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Rational addiction to alcohol: panel data analysis of liquor consumption

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  • Badi H. Baltagi
  • James M. Griffin

Abstract

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. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • Badi H. Baltagi & James M. Griffin, 2002. "Rational addiction to alcohol: panel data analysis of liquor consumption," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 485-491, September.
    • Handle: RePEc:wly:hlthec:v:11:y:2002:i:6:p:485-491
    DOI: 10.1002/hec.748
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    References listed on IDEAS

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