The effects of pricing policies and excise taxes on alcohol consumption

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
(Thea) Yutong Liu (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/
Advisor
Jeremy Bray

Abstract: To address the critical need for understanding the efficacy of pricing policies in reducing excessive drinking, this dissertation examines beverage-specific price elasticities and the pass- through rates of alcohol excise taxes. Using a Poisson Pseudo Maximum Likelihood model, this dissertation reveals varying price elasticities across different alcohol consumption behaviors. Additionally, this dissertation uses the synthetic control procedure to show that a beer excise tax increase in Illinois in 2009 is substantially overshifted. This dissertation provides evidence that excise taxes can serve as an effective and potentially efficient control policy for excessive alcohol consumption. However, tax hikes should be concurrent across all alcoholic products to avoid substitution behaviors that could drive overall consumption in the wrong direction.

Additional Information

Publication
Dissertation
Language: English
Date: 2024
Keywords
Alcohol Consumption, Alcohol Policy, Excessive Drinking, Excise Tax, Price Elasticity, Tax Pass-Through
Subjects
Alcoholic beverages $x Taxation
Drinking of alcoholic beverages $x Economic aspects

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