Malleability of Alcohol Consumption: Evidence from Migrants

Marit Hinnosaar and Elaine Liu

No 30245, NBER Working Papers from National Bureau of Economic Research, Inc

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. We find that if a household moves to a state with a higher (lower) average alcohol purchases than the origin state, the household is likely to increase (decrease) its alcohol purchases right after the move. The current environment explains about two-thirds of the differences in alcohol purchases. The adjustment takes place both on the extensive and intensive margins.

JEL-codes: D12 I12 I18 L66 (search for similar items in EconPapers)
Date: 2022-07
New Economics Papers: this item is included in nep-hea and nep-ure
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Published as Marit Hinnosaar & Elaine M. Liu, 2022. "Malleability of Alcohol Consumption: Evidence from Migrants," Journal of Health Economics, vol 85.

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