American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Demand for Alcohol Consumption in Russia and Its Implication for Mortality
American Economic Journal: Applied Economics
vol. 10,
no. 1, January 2018
(pp. 106–49)
(Complimentary)
Abstract
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.Citation
Yakovlev, Evgeny. 2018. "Demand for Alcohol Consumption in Russia and Its Implication for Mortality." American Economic Journal: Applied Economics 10 (1): 106–49. DOI: 10.1257/app.20130170Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- H25 Business Taxes and Subsidies including sales and value-added (VAT)
- I12 Health Behavior
- L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
- P23 Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
- P36 Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty