Does a Cocktail to-go Come with a Free Lunch?

Mao, Yufeng (Sophia); Patel, Tarun

doi:10.2139/ssrn.4629687

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Does a Cocktail to-go Come with a Free Lunch?

SMU Cox School of Business Research Paper No. 23-22

48 Pages Posted: 13 Nov 2023 Last revised: 14 Nov 2023

See all articles by Yufeng (Sophia) Mao

Yufeng (Sophia) Mao

University of Washington, Michael G. Foster School of Business, Students

Tarun Patel

Southern Methodist University (SMU) - Finance Department

Date Written: August 25, 2023

Abstract

This paper studies the consequences of to-go alcohol policies in the United States. Allowing consumers to take beverages with them from restaurants eases access to alcohol, resulting in greater excise tax revenues. The support of restaurants during the Covid-19 crisis might have had substantial spillover benefits as measured by general sales tax revenues. However, the benefits come at a social cost; to-go alcohol policies appear to increase incidences of drinking and driving. The number of fatalities from collisions involving a drinking driver increases with the implementation of to-go alcohol policies, suggesting to-go alcohol does not come with a free lunch.

Keywords: alcohol regulation, tax revenues, traffic fatalities

JEL Classification: D61, D62, H71, H75, I18

Suggested Citation: Suggested Citation

Mao, Yufeng and Patel, Tarun, Does a Cocktail to-go Come with a Free Lunch? (August 25, 2023). SMU Cox School of Business Research Paper No. 23-22, Available at SSRN: https://ssrn.com/abstract=4629687 or http://dx.doi.org/10.2139/ssrn.4629687