Alcohol consumption in the G7 countries (1960-2021). Permanent versus transitory shocks

This paper analyses the degree of persistence in the level of consumption of alcohol in the Group of Seven (G7) countries by using fractional integration. The series under examination are annual sales of pure alcohol in litres per person aged 15 years and older, annually from 1960 to 2021, and we look at the influence that external shocks might have had on the series in these countries. The results indicate that only France displays a significant negative trend and thus a continuous decrease in the level of alcohol consumption. For the rest of the countries, the time trend is insignificant. Dealing with persistence, Japan is the only country that shows clear evidence of reversion to the mean. Policy recommendations are reported at the end of the manuscript.