Who Pays the Bar Tab? Beer Consumption and Economic Growth in the United States

18 Pages Posted: 20 Nov 2013

See all articles by Resul Cesur

Resul Cesur

University of Connecticut, School of Business - Dept. of Healthcare Economics

Inas Kelly

National Bureau of Economic Research; Loyola Marymount University

Date Written: January 2014

Abstract

Few studies explore the linkages between health behaviors and macroeconomic outcomes. This study uses 1971–2007 state‐level data from the United States to estimate the impact of beer consumption on economic growth. We document that beer consumption has negative effects on economic growth measures once the endogeneity of beer consumption is addressed. Our estimates are robust to a range of specification checks. These findings run parallel to a large body of literature documenting substantial social and economic costs stemming from alcohol use.

JEL Classification: I1, O4

Suggested Citation

Cesur, Resul and Kelly, Inas, Who Pays the Bar Tab? Beer Consumption and Economic Growth in the United States (January 2014). Economic Inquiry, Vol. 52, Issue 1, pp. 477-494, 2014. Available at SSRN: https://ssrn.com/abstract=2357246 or http://dx.doi.org/10.1111/ecin.12048

Resul Cesur

University of Connecticut, School of Business - Dept. of Healthcare Economics ( email )

School of Business
2100 Hillside Road
Storrs, CT 06269
United States

Inas Kelly

National Bureau of Economic Research ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Loyola Marymount University ( email )

7900 Loyola Boulevard
Los Angeles, CA 90045
United States

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