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Rational Addiction and Alcohol Consumption: Evidence from the Nordic Countries

Jan Bentzen, Tor Eriksson () and V. Smith
Authors registered in the RePEc Author Service: V. Kerry Smith and Valdemar Smith ()

Working Papers from Aarhus School of Business - Department of Economics

Abstract: The purpose of this paper is to test Becker and Murphy's (1988) rational addiction model on (35 years of) time series data on alcohol consumption in each of the four Nordic countries: Denmark, Finland, Norway and Sweden. The empirical relevance of rational addiction theory is assessed by examining the influence of past and future consumption as well as past, contemporaneous and future prices on current consumption.

Keywords: ALCOHOL; CONSUMPTION (search for similar items in EconPapers)
JEL-codes: D12 I10 (search for similar items in EconPapers)
Date: 1997
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