The effect of economic conditions on alcohol consumption

Jakub Čihák ()
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Jakub Čihák: University of Economics in Prague

International Review of Economics, No 0, 17 pages

Abstract: Abstract This study investigates a previously unexplored relationship between unemployment and alcohol-related liver cirrhosis in the Czech Republic. Models were estimated in several specifications using fixed effects on panel data for all regions in the Czech Republic between 1994 and 2016. The focus is on whether alcohol consumption is pro-cyclical or counter-cyclical. Unlike studies using US data, in which alcohol consumption appears to be pro-cyclical, this study shows that economic downturns result in increased alcohol consumption and, therefore, signals a counter-cyclical relationship. Moreover, the study finds that divorce increases alcohol consumption, while increases in the real price of alcohol decrease consumption.

Keywords: Business cycles; Liver cirrhosis; Alcohol consumption; Unemployment (search for similar items in EconPapers)
JEL-codes: E32 I12 R11 (search for similar items in EconPapers)
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DOI: 10.1007/s12232-020-00351-z

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