Using Nlsy-Geocode Data To Determine The Effects Of Taxes And Minimum Age Laws On The Alcoholic Beverage Demand Of Young Adults

Mark Paul Gius

New York Economic Review, 2003, vol. 34, issue 1, 38-50

Abstract: In the present study, OLS and logit regression analysis are used to determine the effect that minimum age laws and taxes have on alcohol consumption and binge drinking. NLSY-Geocode data are used in order to construct individual-level demand equations. The use of this data allows for the identification of the individual's state of residence and thus enables the researcher to properly match the individual to the appropriate state alcohol tax rate. Results indicate that taxes have a negative effect on alcohol consumption but no effect on binge drinking. Minimum age laws, however, are effective in reducing both the total quantity of alcohol consumed and binge drinking.

Date: 2003
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