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The Decentralization of Liquor Policies in Texas during the Post-Prohibition Era

Author

Listed:
  • Andrew Arnold
  • Holger Sieg

Abstract

We examine the decentralization of liquor policies in Texas during the Post-Prohibition era using newly collected historical legislative roll call data. By combining these data with local referendum vote shares, we analyze both legislators’ and constituents’ preferences on liquor policy. We develop a probabilistic voting model incorporating spillovers and peer effects. Results reveal substantial heterogeneity in preferences among voters, reflecting differing attitudes toward alcohol regulation. Spillover effects are significant, yet the model predicts notable gains from decentralization. Finally, we link legislators’ policy preferences to alcohol consumption data and compare model-based welfare estimates with traditional consumption-based measures.

Suggested Citation

  • Andrew Arnold & Holger Sieg, 2023. "The Decentralization of Liquor Policies in Texas during the Post-Prohibition Era," NBER Working Papers 31500, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31500
    Note: PE POL
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    More about this item

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • H0 - Public Economics - - General
    • P0 - Political Economy and Comparative Economic Systems - - General

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