An analysis of divergent trends in alcohol consumption and economic development

Alcohol consumption has increased significantly since World War II--a trend that is frequently explained by the economic growth during this period. During the second half of the 19th century, the overall trend in alcohol consumption decreased despite strong economic growth. In this study, the reasons for this apparent anomaly are discussed. It is argued that economic factors played an important role in the decrease during the late 19th century as well as in ensuing years, and that the difference in consumption trends is due to factors other than economics. This argument is corroborated by a time-series analysis of Norwegian data 1865-1982, showing that the effects of economic development were at least as strong during the first part of this period as they were during the latter.