Effects of Alcohol Price Policy on Youth

34 Pages Posted: 12 Apr 2004 Last revised: 27 Jun 2010

See all articles by Michael Grossman

Michael Grossman

National Bureau of Economic Research (NBER), NY Office; CUNY The Graduate Center - Department of Economics

Frank J. Chaloupka

University of Illinois at Chicago - Department of Economics; National Bureau of Economic Research (NBER)

Henry Saffer

National Bureau of Economic Research (NBER) - NY Office

Adit Laixuthai

Chulalongkorn University

Date Written: June 1993

Abstract

In this paper we summarize research that deals with the effects of alcoholic beverage prices and excise taxes on a variety of outcomes for youth. These include alcohol consumption, excessive consumption, motor vehicle accident mortality, and college completion rates. The research employs six nationally representative data sets on individuals that span the period from 1974 through 1989 and two state level data sets for the years 1975-1981 and 19821988. The studies find that alcohol use and motor vehicle accident mortality are negatively related to the cost of alcohol. College completion rates are positively related to this variable. Clearly, these are policy-relevant findings since price is a policy-manipulable variable. Frequently, the effects of a variety of simulated excise tax hikes exceed those of the uniform minimum legal drinking age of 21 in all states.

Suggested Citation

Grossman, Michael and Chaloupka, Frank J. and Saffer, Henry and Laixuthai, Adit, Effects of Alcohol Price Policy on Youth (June 1993). NBER Working Paper No. w4385. Available at SSRN: https://ssrn.com/abstract=420298

Michael Grossman (Contact Author)

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Frank J. Chaloupka

University of Illinois at Chicago - Department of Economics ( email )

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Henry Saffer

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Adit Laixuthai

Chulalongkorn University ( email )

Bangkok 10330
Thailand

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