The Pharmacological Channel Revisited: Alcohol Sales Restrictions and Crime in Bogota

39 Pages Posted: 6 Jun 2013

See all articles by Joao Mello

Joao Mello

Pontifical Catholic University of Rio de Janeiro (PUC-Rio)

Daniel Mejia

Universidad de los Andes, Colombia - Department of Economics

Lucia Suarez

Universidad de los Andes, Colombia - Department of Economics

Date Written: April 2013

Abstract

This paper attempts to evaluate the impact on crime of the restriction of late-night alcohol sales in Bogota and quantify the causal effect of problematic alcohol consumption on different crime categories. It is found that the restriction reduced deaths and injuries in car accidents and batteries. The results are stronger in areas where the restriction was actually binding and are highly heterogeneous depending on the number of liquor stores restricted at the block level. Finally, the paper measures the impact of the restriction on alcohol consumption (the first stage, or mechanism), and quantifies the causal pharmacological impact of alcohol consumption on crime using the restriction as an instrument for problematic alcohol consumption (the second stage). The results indicate that a one standard deviation (s. d.) increase in problematic alcohol consumption increases deaths and injuries in car accidents by 0. 51 s. d and 0. 82 s. d. respectively, and batteries by 1. 27 s. d.

JEL Classification: C2, C54, D04

Suggested Citation

Mello, Joao and Mejia, Daniel and Suarez, Lucia, The Pharmacological Channel Revisited: Alcohol Sales Restrictions and Crime in Bogota (April 2013). IDB Working Paper No. IDB-WP-394, Available at SSRN: https://ssrn.com/abstract=2275160 or http://dx.doi.org/10.2139/ssrn.2275160

Joao Mello (Contact Author)

Pontifical Catholic University of Rio de Janeiro (PUC-Rio) ( email )

Rua Marquas de Sao Vicente, 225
Rio De Janeiro, RJ 22453-900
Brazil

Daniel Mejia

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1 No. 18 A - 10
Bogotá, AA4976
Colombia
57(1)3394949 ext 3737 (Phone)
57(1)3324492 (Fax)

HOME PAGE: http://economia.uniandes.edu.co/share/scripts/home/home.php

Lucia Suarez

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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