Alcohol abuse is widely blamed for the very high rate of male mortality in Russia. I estimate a structural model of the demand for alcohol that incorporates two features of alcohol consumption, peer effects and habits. I use a kink in the policy regime of the excise tax on alcohol and regional variation in alcohol regulations to estimate a price elasticity of demand for alcohol. I find that peer influence and habits are critical determinants of the response of alcohol demand to price changes. The estimates imply that increases in alcohol prices would yield significant reductions in mortality.
"Demand for Alcohol Consumption in Russia and Its Implication for Mortality."
American Economic Journal: Applied Economics,
Consumer Economics: Empirical Analysis
Business Taxes and Subsidies including sales and value-added (VAT)
Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty