Malleability of Alcohol Consumption: Evidence from Migrants / Marit Hinnosaar, Elaine M. Liu.

Format:

Book

Author/Creator:

Hinnosaar, Marit.

Contributor:

National Bureau of Economic Research.

Liu, Elaine M.

Series:

Working Paper Series (National Bureau of Economic Research) no. w30245.

NBER working paper series no. w30245

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

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.

Notes:

Print version record

July 2022.