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A note on 'Economic conditions and alcohol problems'.

D G Freeman1

  • 1Department of Economics and International Business, Sam Houston State University, Huntsville, TX 77341-2118, USA. ecovdgf@shsu.edu

Journal of Health Economics
|January 6, 2000
PubMed
Summary

Economic downturns increase alcohol consumption, a pattern confirmed by new analysis. This study corrects previous methods, showing alcohol use is pro-cyclical regardless of the time period examined.

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Area of Science:

  • Economics
  • Public Health
  • Econometrics

Background:

  • Reexamines the effect of economic conditions on alcohol consumption using U.S. state-level data.
  • Addresses potential bias and inconsistency in prior analyses due to non-stationarity in time series data.

Discussion:

  • Employs corrected estimation techniques, specifically logarithmic first differences, to address time series non-stationarity.
  • Validates the pro-cyclical relationship between economic conditions and alcohol consumption.

Key Insights:

  • Ruhm's (1995) original findings on pro-cyclical alcohol consumption are confirmed.
  • The pro-cyclical nature of alcohol consumption is shown to be robust across different sample periods, unlike previous estimates.

Outlook:

  • Suggests the need for robust econometric methods when analyzing economic impacts on public health behaviors.
  • Highlights the consistent link between economic fluctuations and alcohol consumption patterns.

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