Malleability of Alcohol Consumption: Evidence from Migrants

53 Pages Posted: 9 Apr 2020 Last revised: 25 Oct 2021

See all articles by Marit Hinnosaar

Marit Hinnosaar

University of Nottingham

Elaine Liu

University of Houston

Multiple version iconThere are 3 versions of this paper

Date Written: September 22, 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. We find that if a household moves to a state with a higher (lower) average alcohol purchases than the origin state, the household is likely to increase (decrease) its alcohol purchases right after the move. The current environment explains about two-thirds of the differences in alcohol purchases. The adjustment takes place both on the extensive and intensive margins.

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 (September 22, 2021). Available at SSRN: https://ssrn.com/abstract=3569603 or http://dx.doi.org/10.2139/ssrn.3569603

Marit Hinnosaar (Contact Author)

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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