Demand for Alcohol Consumption in Russia and Its Implication for Mortality

Evgeny Yakovlev

American Economic Journal: Applied Economics, 2018, vol. 10, issue 1, 106-49

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.

JEL-codes: D12 H25 I12 L66 P23 P36 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/app.20130170
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Citations: View citations in EconPapers (19)

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