Persistence in alcohol consumption: evidence from migrants

Marit Hinnosaar and Elaine Liu

No 15196, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: How malleable is alcohol consumption? Specifically, how much is alcohol consumption driven by the current environment versus individual characteristics? To answer this question, we analyze changes in alcohol purchases when consumers move from one state to another in the United States. Right after moving, movers’ alcohol purchases converge sharply toward the average level in their destination state, implying that the current environment explains about two-thirds of the differences in alcohol purchases. The adjustment takes place both on the extensive and intensive margin.

Keywords: Alcohol; Geographic variation; Migration; Taxes; Regulation (search for similar items in EconPapers)
JEL-codes: D12 I12 I18 L66 (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-ure
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