SOCIAL DRINKING VERSUS ADMINISTERING ALCOHOL

Björn Frank, Justus Haucap and Annika Herr

Economic Inquiry, 2014, vol. 52, issue 3, 1245-1247

Abstract: type="main" xml:id="ecin12079-abs-0001"> Alcohol consumption tends to make some people (unwillingly) tell the truth, hence social drinking can serve as a signal in social contact games. We provide empirical evidence which shows that social drinking can serve as a trust facilitating mechanism. Liver cirrhosis mortality and the rate of abstainers are used to construct a novel index of moderate alcohol consumption, which correlates with trust levels in a cross-country analysis.(JEL L14, D82, D71)

Date: 2014
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