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Habit and Heterogeneity in the Youthful Demand for Alcohol

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  • Michael J. Moore
  • Philip J. Cook

Abstract

Observed patterns of youthful drinking indicate substantial persistence. This paper analyzes how much of that persistence reflects the actual development of a habit, and how much is due to unobserved aspects of the individual and the environment. The role of restrictions on alcohol availability, both in the current period and in adolescence, is also explored. We find that much of the observed persistence represents habit formation, and not unobserved characteristics. Consequently, restrictions on availability, particularly at an early age, alter subsequent patterns of alcohol consumption and abuse.

Suggested Citation

  • Michael J. Moore & Philip J. Cook, 1995. "Habit and Heterogeneity in the Youthful Demand for Alcohol," NBER Working Papers 5152, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:5152
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    References listed on IDEAS

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    Cited by:

    1. Angela K. Dills, 2004. "Alcohol Prohibition and Cirrhosis," American Law and Economics Review, Oxford University Press, vol. 6(2), pages 285-318.
    2. Cook, Philip J. & Moore, Michael J., 2000. "Alcohol," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 30, pages 1629-1673 Elsevier.
    3. Rees, Daniel I. & Argys, Laura M. & Averett, Susan L., 2001. "New evidence on the relationship between substance use and adolescent sexual behavior," Journal of Health Economics, Elsevier, vol. 20(5), pages 835-845, September.
    4. Markowitz, Sara & Grossman, Michael, 2000. "The effects of beer taxes on physical child abuse," Journal of Health Economics, Elsevier, vol. 19(2), pages 271-282, March.
    5. Jenny Williams, 2005. "Habit formation and college students' demand for alcohol," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 119-134.
    6. Rosalie Liccardo Pacula, 1998. "Adolescent Alcohol and Marijuana Consumption: Is There Really a Gateway Effect?," NBER Working Papers 6348, National Bureau of Economic Research, Inc.
    7. Peter Nilsson, 2008. "Does a pint a day affect your child's pay? The effect of prenatal alcohol exposure on adult outcomes," CeMMAP working papers CWP22/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    8. Michael Grossman & Sarah Markowitz, 2005. "I Did What Last Night? Adolescent Risky Sexual Behaviors and Substance Abuse," Eastern Economic Journal, Eastern Economic Association, vol. 31(3), pages 383-405, Summer.
    9. Sangho KIM & Donghyun PARK, 2010. "Addictive behavior in cinema demand: evidence from Korea," Economic Growth Centre Working Paper Series 1002, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    10. Pinka Chatterji & Sara Markowitz, 2000. "The Impact of Maternal Alcohol and Illicit Drug Use on Children's Behavior Problems: Evidence from the Children of the National Longitudinal Survey..," NBER Working Papers 7692, National Bureau of Economic Research, Inc.
    11. Philip J. Cook & Michael J. Moore, 2001. "Environment and Persistence in Youthful Drinking Patterns," NBER Chapters,in: Risky Behavior among Youths: An Economic Analysis, pages 375-438 National Bureau of Economic Research, Inc.
    12. Li, Wenying & Dorfman, Jeffrey H., 2018. "Habit Formation with Smooth Transitions: Estimating Demand for U.S. Carbonated-Sweetened Beverages and Beer," 2018 Annual Meeting, August 5-7, Washington, D.C. 273852, Agricultural and Applied Economics Association.
    13. Jeffrey A. Miron, 1997. "The Effects of Alcohol Prohibition on Alcohol Consumption," Papers 0078, Boston University - Industry Studies Programme.
    14. David Figlio & Jens Ludwig, 2012. "Sex, Drugs, and Catholic Schools: Private Schooling and Non-Market Adolescent Behaviors," German Economic Review, Verein für Socialpolitik, vol. 13(4), pages 385-415, November.
    15. Lorenz Kueng & Evgeny Yakovlev, 2016. "Long-Run Effects of Public Policies: Endogenous Alcohol Preferences and Life Expectancy in Russia," Working Papers w0219, Center for Economic and Financial Research (CEFIR).
    16. Michael Grossman & Robert Kaestner & Sara Markowitz, 2004. "An Investigation of the Effects of Alcohol Policies on Youth STDs," NBER Working Papers 10949, National Bureau of Economic Research, Inc.
    17. Kwabena Gyimah-Brempong, 2006. "Neighborhood income, alcohol availability, and crime rates," The Review of Black Political Economy, Springer;National Economic Association, vol. 33(3), pages 21-44, March.
    18. Grossman, Michael & Chaloupka, Frank J & Sirtalan, Ismail, 1998. "An Empirical Analysis of Alcohol Addiction: Results from the Monitoring the Future Panels," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 39-48, January.
    19. Sara Markowitz & Michael Grossman, 1998. "The Effects of Alcohol Regulation on Physical Child Abuse," NBER Working Papers 6629, National Bureau of Economic Research, Inc.
    20. Andrienko Yury & Nemtsov Aleksandr, 2005. "Estimation of individual demand for alcohol," EERC Working Paper Series 05-10e, EERC Research Network, Russia and CIS.
    21. Yuriy Andrienko & A. Nemtsov, 2006. "Estimation of Individual Demand for Alcohol," Working Papers w0089, Center for Economic and Financial Research (CEFIR).
    22. C. Vilaplana & José M. Labeaga & S. Jiménez-Martín, 2006. "Further evidence about alcohol consumption and the business cycle," Working Papers 2006-06, FEDEA.
    23. Jason Fletcher, 2012. "Peer influences on adolescent alcohol consumption: evidence using an instrumental variables/fixed effect approach," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1265-1286, October.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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