Persistence in Alcohol Consumption: Evidence from Migrants
45 Pages Posted: 12 Sep 2020 Last revised: 2 Nov 2020
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Malleability of Alcohol Consumption: Evidence from Migrants
Malleability of Alcohol Consumption: Evidence from Migrants
Malleability of Alcohol Consumption: Evidence from Migrants
Date Written: August 2020
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, Regulation, taxes
JEL Classification: D12, I12, I18, L66
Suggested Citation: Suggested Citation