Rational addiction to alcohol: panel data analysis of liquor consumption.
Utilizing a panel data set of 42 states over the period 1959-1994, this paper estimates a rational addiction model for liquor consumption for the US. The empirical evidence is consistent with the rational addiction hypothesis proposed by Becker and Murphy. However, the results are sensitive to the assumption of homogeneity across states or over time.
Department of Economics, Texas A&M University, College Station, 77843-4228, USA. badi@econ.tamu.edu
Badi H
BH
Baltagi
James M
JM
Griffin
D000328:Adult; D000368:Aged; D000428:Alcohol Drinking / Q000191:economics / Q000453:epidemiology; D000437:Alcoholism / Q000191:economics / Q000453:epidemiology* / Q000523:psychology*; D016739:Behavior, Addictive / Q000191:economics / Q000523:psychology*; D002755:Choice Behavior; D005249:Fees and Charges; D006801:Humans; D008875:Middle Aged; D012309:Risk-Taking; D014481:United States