Files

Abstract

This paper is a replication of An Empirical Analysis of Alcohol Addiction: Results From The Monitoring The Future Panels with the same theoretic and empirical frameworks but different and new dataset. The aims of this paper are to use rational addictive model to examine alcohol consumption behavior. Specifically, with the interdependency of past, current and future consumption of addictive goods like alcohol, rational addictive model can explain that the consumption of addictive goods is actually addictive. The new data comes from National Longitudinal Survey of Youth, 1979 and the age of the observants comes from different level, which will have more comprehensive results. By the end of the study, although the results are not statistically significant, they still show that alcohol consumption is actually an addictive behavior in a sense that past or future consumption of alcohol will cause the current consumption of alcohol to rise. This positive future or past consumption effect is in line with rational addiction theory and inconsistent with myopic addiction. The long run and short run price elasticity is negative and the ratio is about 1.43, which is less than the comparable ratio of 1.60 from the replicating paper.

Details

Actions

PDF

from
to
Export
Download Full History