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The (short-term) individual welfare consequences of an alcohol ban

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  • Petilliot, René

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

  • Petilliot, René, 2018. "The (short-term) individual welfare consequences of an alcohol ban," FZG Discussion Papers 67, University of Freiburg, Research Center for Generational Contracts (FZG).
    • Handle: RePEc:zbw:fzgdps:67
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    References listed on IDEAS

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    Cited by:

    1. Renz, Timon, 2021. "Development policy based on happiness? A review of concepts, ideas and pitfalls," FZG Discussion Papers 75, University of Freiburg, Research Center for Generational Contracts (FZG).

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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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