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Alcohol consumption and individual time preferences of Russians

Author

Listed:
  • Tatiana Kossova

    (National Research University Higher School of Economics)

  • Elena Kossova

    (National Research University Higher School of Economics)

  • Maria Sheluntcova

    (National Research University Higher School of Economics)

Abstract

This paper explores the relationship between socioeconomic factors—particularly, the rate of time preferences and alcohol consumption in Russia. The rate of time preferences shows an individual’s willingness to delay the utility from consumption to future periods of time. The relationship between this rate and indicators of alcohol consumption is examined separately for men and women. We find significant differences in men’s and women’s patterns of consumption of alcohol. Our findings suggest that the rate of time preferences, along with age, educational level, income, place of residence, and health substantially, affects an individual’s decision to drink alcohol. We show that employment status is endogenous to alcohol consumption and that estimating a system of binary equations is necessary.

Suggested Citation

  • Tatiana Kossova & Elena Kossova & Maria Sheluntcova, 2017. "Alcohol consumption and individual time preferences of Russians," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(1), pages 47-85, March.
    • Handle: RePEc:spr:inrvec:v:64:y:2017:i:1:d:10.1007_s12232-016-0262-3
    DOI: 10.1007/s12232-016-0262-3
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    More about this item

    Keywords

    Time preference; Individual discount rate; Drinking alcohol; Strong alcoholic beverages; Weak alcoholic beverages; Russia;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • I1 - Health, Education, and Welfare - - Health

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