Working Paper: NBER ID: w30245
Authors: Marit Hinnosaar; Elaine M. Liu
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 Consumption; Migrant Behavior; Public Policy
JEL Codes: D12; I12; I18; L66
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Government Policies (H59) | Alcohol Consumption (L66) |
| Household Move to Higher Alcohol Purchase State (R22) | Increase in Alcohol Purchases (L66) |
| Household Move to Lower Alcohol Purchase State (L66) | Decrease in Alcohol Purchases (L66) |
| Household Move (R20) | Change in Alcohol Purchases (L66) |
| Environmental Factors (Q52) | Variation in Alcohol Purchases (L66) |
| Current Environment (P18) | Alcohol Consumption (L66) |