Malleability of Alcohol Consumption: Evidence from Migrants

54 Pages Posted: 9 Apr 2020 Last revised: 15 Apr 2021

See all articles by Marit Hinnosaar

Marit Hinnosaar

University of Turin - Collegio Carlo Alberto; University of Nottingham

Elaine Liu

University of Houston

Multiple version iconThere are 2 versions of this paper

Date Written: April 15, 2021

Abstract

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

Hinnosaar, Marit and Liu, Elaine, Malleability of Alcohol Consumption: Evidence from Migrants (April 15, 2021). Available at SSRN: https://ssrn.com/abstract=3569603 or http://dx.doi.org/10.2139/ssrn.3569603

Marit Hinnosaar (Contact Author)

University of Turin - Collegio Carlo Alberto ( email )

Piazza Arbarello
8
Torino, Torino 10122
Italy

HOME PAGE: http://marit.hinnosaar.net/

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Elaine Liu

University of Houston ( email )

4800 Calhoun Road
Houston, TX 77204
United States

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