Local and global alcohol supply: economic and geographic models of community systems

This paper discusses how economic and geographic distributions of local supply affect patterns of alcohol problems in state and community settings. It is argued that characteristics of local supply directly affect the economic and social behaviors of consumers when purchasing and using alcohol. For example, although taxes may be raised in order to lower alcohol use, the manner in which tax increases are translated into price increases, and the way consumers respond to price increases through alterations in purchase patterns, may strongly mitigate price effects. Similarly, although overall alcohol availability may be reduced in order to lower alcohol use, the tendency for greater numbers of outlets to be focused in low-income areas and the manner in which consumers bundle alcohol purchases with other routine activities (e.g. shopping) may also strongly mitigate such effects.