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Alcohol Prices, Consumption, and Traffic Fatalities

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  • Douglas J. Young
  • Agnieszka Bielinska‐Kwapisz

Abstract

We examine the relationships among alcohol prices, consumption, and traffic fatalities using data across U.S. states from 1982 to 2000. Some previous studies have found large, negative associations between alcohol taxes and fatalities. However, commonly used price data suggest little or no connection between alcohol prices and fatalities. These apparently conflicting findings may result from measurement error and/or endogeneity in the price data, which biases ordinary least squares estimators toward a finding of no price effects. Using alcohol taxes as instrumental variables, fatalities are found to be negatively related to prices. In addition, alcohol consumption is strongly positively related to fatalities. However, biases may still remain, because taxes are not entirely suitable as instruments.

Suggested Citation

  • Douglas J. Young & Agnieszka Bielinska‐Kwapisz, 2006. "Alcohol Prices, Consumption, and Traffic Fatalities," Southern Economic Journal, John Wiley & Sons, vol. 72(3), pages 690-703, January.
    • Handle: RePEc:wly:soecon:v:72:y:2006:i:3:p:690-703
    DOI: 10.1002/j.2325-8012.2006.tb00728.x
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    2. D. Mark Anderson & Benjamin Hansen & Daniel I. Rees, 2013. "Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption," Journal of Law and Economics, University of Chicago Press, vol. 56(2), pages 333-369.
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    4. Anderson, D. Mark & Rees, Daniel I., 2015. "Per se drugged driving laws and traffic fatalities," International Review of Law and Economics, Elsevier, vol. 42(C), pages 122-134.
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    8. Marco Francesconi & Jonathan James, 2022. "Alcohol Price Floors and Externalities: The Case of Fatal Road Crashes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(4), pages 1118-1156, September.

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