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Alcohol Consumption During Prohibition

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  • Jeffrey A. Miron
  • Jeffrey Zwiebel

Abstract

We estimate the consumption of alcohol during Prohibition using mortality, mental health and crime statistics. We find that alcohol consumption fell sharply at the beginning of Prohibition, to approximately 30 percent of its pre-Prohibition level. During the next several years, however, alcohol consumption increased sharply, to about 60-70 percent of its pre-prohibition level. The level of consumption was virtually the same immediately after Prohibition as during the latter part of Prohibition, although consumption increased to approximately its pre-Prohibition level during the subsequent decade.

Suggested Citation

  • Jeffrey A. Miron & Jeffrey Zwiebel, 1991. "Alcohol Consumption During Prohibition," NBER Working Papers 3675, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3675
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    1. Ornstein, Stanley I & Hanssens, Dominique M, 1985. " Alcohol Control Laws and the Consumption of Distilled Spirits and Beer," Journal of Consumer Research, Oxford University Press, vol. 12(2), pages 200-213, September.
    2. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
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    Cited by:

    1. Emmanuelle Auriol & Alice Mesnard, 2016. "Sale of Visas: a Smuggler's Final Song?," Economica, London School of Economics and Political Science, vol. 83(332), pages 646-678, October.
    2. Skott, Peter & Thorlund Jepsen, Gunnar, 2002. "Paradoxical effects of drug policy in a model with imperfect competition and switching costs," Journal of Economic Behavior & Organization, Elsevier, vol. 48(4), pages 335-354, August.
    3. Luijk, E.W. & Ours, J.C., 1993. "How to control drugs : the lessons from the 'Opiumregie' in the Dutch East Indies (1894-1940)," Serie Research Memoranda 0030, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    4. Arturo Bris, 2005. "Do Insider Trading Laws Work?," European Financial Management, European Financial Management Association, vol. 11(3), pages 267-312.
    5. Cho, Seo-Young & Dreher, Axel & Neumayer, Eric, 2013. "Does Legalized Prostitution Increase Human Trafficking?," World Development, Elsevier, vol. 41(C), pages 67-82.
    6. Ciro Biderman & JoãoMP DeMello & Alexandre Schneider, 2010. "Dry Laws and Homicides: Evidence from the São Paulo Metropolitan Area," Economic Journal, Royal Economic Society, vol. 120(543), pages 157-182, March.
    7. Bruce L. Benson & Paul R. Zimmerman, 2010. "Conclusion," Chapters,in: Handbook on the Economics of Crime, chapter 20 Edward Elgar Publishing.
    8. James A. Roumasset, 1996. "Prohibition vs. Taxification: Drug Control Policy in the USA," Working Papers 199608, University of Hawaii at Manoa, Department of Economics.
    9. Nicholas Snow, 2011. "Daniel Okrent, book review of Last Call: The Rise and Fall of Prohibition," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(4), pages 451-454, December.
    10. Ruth Dupré, 2004. "The Prohibition of Alcohol Revisited: the US Case in International Perspective," Cahiers de recherche 04-11, HEC Montréal, Institut d'économie appliquée.
    11. repec:bin:bpeajo:v:26:y:1994:i:1994-3:p:119-175 is not listed on IDEAS
    12. Livingston, Brendan, 2016. "Murder and the black market: Prohibition's impact on homicide rates in American cities," International Review of Law and Economics, Elsevier, vol. 45(C), pages 33-44.
    13. Jeffrey A. Miron, 1997. "The Effects of Alcohol Prohibition on Alcohol Consumption," Papers 0078, Boston University - Industry Studies Programme.
    14. Jeffrey A. Miron & Jeffrey Zwiebel, 1995. "The Economic Case against Drug Prohibition," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 175-192, Fall.
    15. Beenstock, Michael & Rahav, Giora, 2002. "Testing Gateway Theory: do cigarette prices affect illicit drug use?," Journal of Health Economics, Elsevier, vol. 21(4), pages 679-698, July.
    16. Pierre Kopp, 1994. "Consommation de drogue et efficacité des politiques publiques," Revue Économique, Programme National Persée, vol. 45(6), pages 1333-1356.
    17. Dills, Angela K. & Jacobson, Mireille & Miron, Jeffrey A., 2005. "The effect of alcohol prohibition on alcohol consumption: evidence from drunkenness arrests," Economics Letters, Elsevier, vol. 86(2), pages 279-284, February.
    18. H. Naci Mocan & Hope Corman, 2000. "A Time-Series Analysis of Crime, Deterrence, and Drug Abuse in New York City," American Economic Review, American Economic Association, vol. 90(3), pages 584-604, June.
    19. repec:pal:jorsoc:v:59:y:2008:i:10:d:10.1057_palgrave.jors.2602456 is not listed on IDEAS
    20. James A Roumasset, 2000. "Black-Hole Security," Working Papers 200005, University of Hawaii at Manoa, Department of Economics.
    21. Chu, C. Y. Cyrus & Wang, C., 1998. "Economy of specialization and diseconomy of externalities," Journal of Public Economics, Elsevier, vol. 69(2), pages 249-261, June.
    22. Bruce L. Benson & Paul R. Zimmerman (ed.), 2010. "Handbook on the Economics of Crime," Books, Edward Elgar Publishing, number 13180, April.

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