Alcohol Prices and Mortality Due to Liver Cirrhosis: Robust-Regression Results for the European Union, 2000-2010

Sage Open, 5(2), April-June 2015. DOI: 10.1177/2158244015593118

Posted: 3 Jul 2015

See all articles by Jon P. Nelson

Jon P. Nelson

Pennsylvania State University - College of the Liberal Arts - Department of Economic

Date Written: June 25, 2015

Abstract

This study estimates a reduced-form regression model for mortality rates due to alcoholic liver diseases, with alcohol prices and income as explanatory variables. Panel data cover the years 2000-2010 for 21 member countries of the European Union. In the reduced-form, prices affect mortality rates indirectly through the demand for alcohol, while income has potential direct and indirect effects. Country and time fixed-effects are used to control for other factors that influence alcohol consumption and mortality. Special attention is paid to outliers in the data and final results are based on the MS-estimator for robust regressions. Regression results for alcohol prices and income are sensitive to adjustments for stationary data and down-weighting of outliers and other influential data points. Final results indicate that alcohol prices do not affect mortality rates due to chronic liver diseases. Empirical results in the study do not lend support to broad price-based approaches to alcohol policy.

Keywords: liver cirrhosis, alcohol prices, longitudinal data, robust regression

JEL Classification: I12, C23

Suggested Citation

Nelson, Jon P., Alcohol Prices and Mortality Due to Liver Cirrhosis: Robust-Regression Results for the European Union, 2000-2010 (June 25, 2015). Sage Open, 5(2), April-June 2015. DOI: 10.1177/2158244015593118, Available at SSRN: https://ssrn.com/abstract=2626030

Jon P. Nelson (Contact Author)

Pennsylvania State University - College of the Liberal Arts - Department of Economic ( email )

Kern Graduate Building
University Park, PA 16802-3306
United States
814-237-0157 (Phone)

HOME PAGE: http://econ.la.psu.edu/people/jpn

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