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The Passive Drinking Effect: A Collective Demand Application

30 Pages Posted: 25 Apr 2012  

Martina Menon

University of Verona - Department of Economics

Federico Perali

University of Verona - Department of Economics

Luca Piccoli

University of Verona

Date Written: April 23, 2012

Abstract

This paper investigates whether consumption of alcoholic beverages has a passive effect on the distribution of resources among household members. The term passive drinking evokes the negative impact that the drinking behavior of a household member may have on other household members' well-being. To investigate this issue we rely on the collective framework and estimate a structural collective demand system using Italian micro data. The results show that a high level of alcohol consumption of one household member significantly affects the allocation of household resources and may have quasi-external effects. Public costs that are transferred to other household members should be taken into account when designing social policies.

Keywords: Collective model, Demand system, Alcohol consumption, Passive drinking

JEL Classification: C31, C34, C51, D12, D13

Suggested Citation

Menon, Martina and Perali, Federico and Piccoli, Luca, The Passive Drinking Effect: A Collective Demand Application (April 23, 2012). Available at SSRN: https://ssrn.com/abstract=2044799 or http://dx.doi.org/10.2139/ssrn.2044799

Martina Menon (Contact Author)

University of Verona - Department of Economics ( email )

via Cantarane, 24
37129 Verona
Italy

Federico Perali

University of Verona - Department of Economics ( email )

via dell'Artigliere, 19
I-37129 Verona
Italy

Luca Piccoli

University of Verona

Via dell'Artigliere, 8
Verona, 37129
Italy

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