Malleability of Alcohol Consumption: Evidence from Migrants
54 Pages Posted: 9 Apr 2020 Last revised: 15 Apr 2021
Date Written: April 15, 2021
How malleable is alcohol consumption? Specifically, how much is alcohol consumption driven by the current environment versus individual characteristics? To answer this question, we analyze changes in alcohol purchases when consumers move from one state to another in the United States. Right after moving, movers’ alcohol purchases converge sharply toward the average level in their destination state, implying that the current environment explains about two-thirds of the differences in alcohol purchases. The adjustment takes place both on the extensive and intensive margin.
Keywords: alcohol, geographic variation, migration, taxes, regulation
JEL Classification: L66, I12, D12, I18
Suggested Citation: Suggested Citation