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Title: Persistence in alcohol consumption: evidence from migrants

Author(s): Marit Hinnosaar and Elaine M. Liu

Publication Date: August 2020

Keyword(s): Alcohol, Geographic variation, migration, Regulation and taxes

Programme Area(s): Industrial Organization

Abstract: How malleable is alcohol consumption? Specifically, how much is alcohol consumption driven by the current environment versus individual characteristics? To answer this question, we analyze changes in alcohol purchases when consumers move from one state to another in the United States. Right after moving, movers' alcohol purchases converge sharply toward the average level in their destination state, implying that the current environment explains about two-thirds of the differences in alcohol purchases. The adjustment takes place both on the extensive and intensive margin.

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Bibliographic Reference

Hinnosaar, M and Liu, E. 2020. 'Persistence in alcohol consumption: evidence from migrants'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15196