Youth Alcohol Use and Public Policy

by
Adit Laixuthai
Frank Chaloupka

National Bureau of Economic Research, Inc.
Working Paper No. 4278
Reprinted with Permission

ABSTRACT

This paper examines the frequency of youth drinking and heavy drinking in 1982 and 1989. The effects of minimum legal drinking ages and beer excise taxes are considered separately for each year. In both years, drinking is found to be responsive to changes in prices resulting from higher excise taxes. However, the price sensitivity of youth alcohol use fell after the change to a uniform legal drinking age of 21.

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