Economic Conditions and Alcohol Problems

38 Pages Posted: 6 Aug 2000

See all articles by Christopher J. Ruhm

Christopher J. Ruhm

University of Virginia - Frank Batten School of Leadership and Public Policy; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Date Written: November 1994

Abstract

This study investigates the relationship between macroeconomic conditions and two alcohol-related outcomes -- liquor consumption and highway vehicle fatalities. Fixed-effect models are estimated for the 48 contiguous states over the 1975-1988 time period and within-state variations are the focus of analysis. Alcohol consumption and traffic deaths vary procyclically, with a major portion of the effect of economic downturns attributed to reductions in incomes. The intake of hard liquor is the most sensitive to the state of the macroeconomy. There is no evidence, however, that fluctuations in economic conditions have a disproportionate impact on the drunk-driving of young adults.

Suggested Citation

Ruhm, Christopher J., Economic Conditions and Alcohol Problems (November 1994). NBER Working Paper No. w4914, Available at SSRN: https://ssrn.com/abstract=238136

Christopher J. Ruhm (Contact Author)

University of Virginia - Frank Batten School of Leadership and Public Policy ( email )

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IZA Institute of Labor Economics ( email )

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