Alcohol Advertising and Motor Vehicle Fatalities
The purpose of this paper is to empirically estimate the effect of alcohol advertising on motor vehicle fatalities. The concept of an industry level advertising response function is developed and other empirical issues in estimating the effects of advertising are reviewed. The data set consists of quarterly observations, from 1986 to 1989, for 75 advertising markets in the United States and includes 1200 observations. Since motor vehicle fatalities and alcohol advertising are jointly determined, Two Stage Least Squares is used in the estimation. Reduced form fatality models and advertising models are also estimated to predict the effect of changes in the price of advertising. The regression results show that alcohol advertising has a significant and positive effect on motor vehicle fatalities. The data and regression results are used to estimate the effects of two policy options. The first option is to ban all broadcast alcohol advertising. The data indicate that if a ban on broadcast alcohol advertising did not also include bans on other types of alcohol marketing, the effect on motor vehicle fatalities might be in the range of 2000 to 3000 lives saved per year. The second policy is the elimination of the tax deductibility of alcohol advertising. This policy could reduce alcohol advertising by about 27 percent, reduce motor vehicle fatalities by about 2300 deaths per year and raise about $336 million a year in new tax revenue.
|Date of creation:||Apr 1994|
|Date of revision:|
|Publication status:||published as Review of Economics and Statistics, Vol. 79, no. 3 (August 1997): 431-442.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Saffer, Henry, 1993. "Alcohol advertising bans and alcohol abuse: Reply," Journal of Health Economics, Elsevier, vol. 12(2), pages 229-234, July.
- Henry G. Grabowski, 1976. "The Effects of Advertising on the Interindustry Distribution of Demand," NBER Chapters, in: Explorations in Economic Research, Volume 3, number 1, pages 21-75 National Bureau of Economic Research, Inc.
- Henry Saffer, 1989.
"Alcohol Advertising Bans and Alcohol Abuse: An International Perspective,"
NBER Working Papers
3052, National Bureau of Economic Research, Inc.
- Saffer, Henry, 1991. "Alcohol advertising bans and alcohol abuse: An international perspective," Journal of Health Economics, Elsevier, vol. 10(1), pages 65-79, May.
- Young, Douglas J., 1993. "Alcohol advertising bans and alcohol abuse: Comment," Journal of Health Economics, Elsevier, vol. 12(2), pages 213-228, July.
- Walsh, Brendan M, 1982. "The Demand for Alcohol in the UK: A Comment," Journal of Industrial Economics, Wiley Blackwell, vol. 30(4), pages 439-46, June.
- Ornstein, Stanley I & Hanssens, Dominique M, 1985. " Alcohol Control Laws and the Consumption of Distilled Spirits and Beer," Journal of Consumer Research, University of Chicago Press, vol. 12(2), pages 200-213, September.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:4708. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.