Bowling Alone, Drinking Together

Alcohol consumption may be associated to a rich social life, but its abuse might be related to a poor social life. This paper investigates whether alcohol consumption is a socially enjoyed good (a complement of social relations) or a substitute for social relations. In particular, it explores whether the answer changes between use and abuse, beer, wine and spirits, youth and adults, controlling or not for family influence and unobserved heterogeneity, and for various forms of social relations. Controlling for a great number of covariates and allowing for non linear and identity-specific family interaction effects, we find that alcohol consumption is a socially enjoyed good.