Lockdown drinking: The sobering effect of price controls in a pandemic

Farasat Bokhari, Ratula Chakraborty, Paul W. Dobson and Marcello Morciano

Economic Inquiry, 2024, vol. 62, issue 4, 1539-1557

Abstract: Lockdown restrictions reduce the spread of COVID‐19 but disrupt livelihoods and lifestyles that can induce harmful behavior changes, including problematic lockdown drinking fueled by cheap alcohol. Exploiting differences amongst the four constituent countries of the United Kingdom, we use triple difference analysis on alcohol retail sales to examine the efficacy of minimum unit pricing as a price control device to help curb excessive consumption in a pandemic setting. We find the policy is remarkably effective and well‐targeted in reducing demand for cheap alcohol, with minimal spillover effects, and consumers overall buying and spending less.

Date: 2024
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https://doi.org/10.1111/ecin.13237

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