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Economic Conditions and Alcohol Problems

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  • Christopher Ruhm

Abstract

This study investigates the relationship between macroeconomic conditions and two alcohol-related outcomes -- liquor consumption and highway vehicle fatalities. Fixed-effect models are estimated for the 48 contiguous states over the 1975-1988 time period and within-state variations are the focus of analysis. Alcohol consumption and traffic deaths vary procyclically, with a major portion of the effect of economic downturns attributed to reductions in incomes. The intake of hard liquor is the most sensitive to the state of the macroeconomy. There is no evidence, however, that fluctuations in economic conditions have a disproportionate impact on the drunk-driving of young adults.

Suggested Citation

  • Christopher Ruhm, 1994. "Economic Conditions and Alcohol Problems," NBER Working Papers 4914, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:4914
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    References listed on IDEAS

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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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