The Economics of Minimum Pricing for Alcohol

16 Pages Posted: 7 Jun 2013

See all articles by Barrie Craven

Barrie Craven

University of Newcastle (Australia) - Newcastle Business School

Michael L. Marlow

California State Polytechnic University, San Luis Obispo

Alden Shiers

California State Polytechnic University, San Luis Obispo - Economics

Date Written: June 2013

Abstract

This article explores a wide range of issues that proponents of setting minimum prices for alcohol must resolve before they can safely claim their proposals improve public health and decrease public health care costs. Problems range from inability to know ‘correct’ prices and why tacking on pricing regulations to markets already taxed makes sense, to various unintended adverse consequences such as generating higher demand for illegal drugs and alcohol. It also remains unclear why advocates would not prefer to raise taxes since this is the typical method that economists propose to correct markets in which harm spills over to innocent parties.

Keywords: alcohol, externalities, public health, regulation, taxation

JEL Classification: I18, H2

Suggested Citation

Craven, Barrie and Marlow, Michael L. and Shiers, Alden, The Economics of Minimum Pricing for Alcohol (June 2013). Economic Affairs, Vol. 33, Issue 2, pp. 174-189, 2013, Available at SSRN: https://ssrn.com/abstract=2275734 or http://dx.doi.org/10.1111/ecaf.12015

Barrie Craven (Contact Author)

University of Newcastle (Australia) - Newcastle Business School ( email )

City Campus East – 231
Newcastle-Upon-Tyne NE1 8ST, NE1 8ST
United Kingdom

Michael L. Marlow

California State Polytechnic University, San Luis Obispo ( email )

San Luis Obispo, CA 93407
United States

Alden Shiers

California State Polytechnic University, San Luis Obispo - Economics ( email )

United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
451
PlumX Metrics