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The (Short-Term) Individual Welfare Consequences of an Alcohol Ban

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  • René Petilliot

Abstract

This paper provides the first empirical analysis of the (short-term) welfare consequences of an alcohol ban. Using subjective well-being data to proxy individual welfare, I apply a regression discontinuity design where the date of the implementation of the ban in the German federal state of Baden-Wuerttemberg functions as discontinuity. I find that the ban reduces life satisfaction of the total population and the subpopulation of drinkers, while life satisfaction of nondrinkers is unaffected. My findings are well in line with the rational addiction model perspective.

Suggested Citation

  • René Petilliot, 2018. "The (Short-Term) Individual Welfare Consequences of an Alcohol Ban," SOEPpapers on Multidisciplinary Panel Data Research 979, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp979
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.597707.de/diw_sp0979.pdf
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Alcohol ban; Well-being; Life satisfaction; Welfare; Addiction; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D60 - Microeconomics - - Welfare Economics - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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