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Good Times Are Drinking Times: Empirical Evidence on Business Cycles an Alcohol Sales in Sweden 1861-2000

Author

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  • Krüger, Niclas A

    (Department of Business, Economics, Statistics and Informatics)

  • Svensson, Mikael

    (Department of Business, Economics, Statistics and Informatics)

Abstract

This paper studies the relationship between the business cycle and alcohol sales in Sweden using a data set for the years 1861-2000. Using wavelet based band-pass filtering it is found that there is a pro-cyclical relationship, i.e. alcohol sales increases in short-term economic upturns. Using moving window techniques we see that the pro-cyclical relationship holds over the entire time period. We also find that alcohol sales are a long-memory process with non-stationary behavior, i.e. a shock in alcohol sales has persistent effects

Suggested Citation

  • Krüger, Niclas A & Svensson, Mikael, 2008. "Good Times Are Drinking Times: Empirical Evidence on Business Cycles an Alcohol Sales in Sweden 1861-2000," Working Papers 2008:2, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2008_002
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    References listed on IDEAS

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    9. Svensson, Mikael, 2007. "Do not go breaking your heart: Do economic upturns really increase heart attack mortality?," Social Science & Medicine, Elsevier, vol. 65(4), pages 833-841, August.
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    Cited by:

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    2. Chad Cotti & David Simon, 2018. "The Impact Of Stock Market Fluctuations On The Mental And Physical Well‐Being Of Children," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1007-1027, April.
    3. Ólafsdóttir, Thorhildur & Hrafnkelsson, Birgir & Thorgeirsson, Gudmundur & Ásgeirsdóttir, Tinna Laufey, 2016. "The tax-free year in Iceland: A natural experiment to explore the impact of a short-term increase in labor supply on the risk of heart attacks," Journal of Health Economics, Elsevier, vol. 49(C), pages 14-27.
    4. Jakub Čihák, 2020. "The effect of economic conditions on alcohol consumption," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(4), pages 481-497, December.
    5. Jakub Čihák, 0. "The effect of economic conditions on alcohol consumption," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 0, pages 1-17.
    6. Thorhildur Ólafsdóttir & Tinna Ásgeirsdóttir, 2015. "Gender differences in drinking behavior during an economic collapse: evidence from Iceland," Review of Economics of the Household, Springer, vol. 13(4), pages 975-1001, December.

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    More about this item

    Keywords

    Businesscycles:Alcohol:Sweden;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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