Malleability of Alcohol Consumption: Evidence from Migrants

53 Pages Posted: 9 Dec 2021

See all articles by Marit Hinnosaar

Marit Hinnosaar

University of Nottingham

Elaine Liu

University of Houston

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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

Suggested Citation

Hinnosaar, Marit and Liu, Elaine, Malleability of Alcohol Consumption: Evidence from Migrants. Available at SSRN: https://ssrn.com/abstract=3970465 or http://dx.doi.org/10.2139/ssrn.3970465

Marit Hinnosaar

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Elaine Liu (Contact Author)

University of Houston ( email )

4800 Calhoun Road
Houston, TX 77204
United States

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