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USSR babies: who drinks vodka in Russia?

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  • Evgeny Yakovlev

    (New Economic School and CEFIR)

Abstract

By analyzing individual-level data on the alcohol consumption of Russian males, this paper finds evidence for a longstanding persistence of habits towards certain type of habit-forming goods. Males who grew up in the USSR are accustomed to vodka – the most popular liquor during the Soviet era – whereas those who entered their twenties in the post-Soviet period after the beer industry expanded prefer beer. This finding emphasizes the importance of policy towards young people when they form their habits. The second finding of this paper is that habits and substitution effects outweigh “stepping stone” effect, in both short and long run periods. Policy simulation shows that a 50% subsidy on beer and 30% tax on vodka will decrease male mortality from 1.41% to 0.95% in 10 years, halving the gap between Russian and western-European mortality rates.

Suggested Citation

  • Evgeny Yakovlev, 2012. "USSR babies: who drinks vodka in Russia?," Working Papers w0183, New Economic School (NES).
  • Handle: RePEc:abo:neswpt:w0183
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    File URL: https://www.nes.ru/files/Preprints-resh/WP183.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Alexander S. Skorobogatov, 2014. "The Effect Of Closing Hour Restrictions On Alcohol Use And Abuse In Russia," HSE Working papers WP BRP 63/EC/2014, National Research University Higher School of Economics.
    2. Alexander S. Skorobogatov, 2021. "The effect of alcohol sales restrictions on alcohol poisoning mortality: Evidence from Russia," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1417-1442, June.
    3. Yana Roshchina, 2013. "To drink or not to drink: the microeconomic analysis of alcohol consumption in Russia in 2006-2010," HSE Working papers WP BRP 20/SOC/2013, National Research University Higher School of Economics.
    4. Tatiana V. Kossova & Elena V. Kossova & Maria A. Sheluntcova, 2014. "Investigating The Volume And Structure Of Alcohol Consumption And Their Impact On Life Expectancy In Russian Regions," HSE Working papers WP BRP 82/EC/2014, National Research University Higher School of Economics.

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