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EASING THE PAIN OF AN ECONOMIC DOWNTURN: MACROECONOMIC CONDITIONS AND EXCESSIVE ALCOHOL CONSUMPTION
Author(s) -
Dávalos María E.,
Fang Hai,
French Michael T.
Publication year - 2012
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.1788
Subject(s) - economics , binge drinking , recession , unemployment , consumption (sociology) , alcohol consumption , demographic economics , panel data , monetary economics , alcohol , environmental health , medicine , suicide prevention , poison control , econometrics , macroeconomics , social science , biochemistry , chemistry , sociology
SUMMARY Individuals can react to financial stress in a variety of ways, such as reducing discretionary spending or engaging in risky behaviors. This article investigates the effect of changing macroeconomic conditions (measured by the unemployment rate in the state of residence) on one type of risky behavior: excessive alcohol consumption. Using unique and recent panel data from waves 1 and 2 of the National Epidemiological Survey on Alcohol and Related Conditions (NESARC) and estimating fixed‐effects models, we find that changes in the unemployment rate are positively related to changes in binge drinking, alcohol‐involved driving, and alcohol abuse and/or dependence. Some differences are present among demographic groups, primarily in the magnitude of the estimated effects. These results contradict previous studies and suggest that problematic drinking may be an indirect and unfortunate consequence of an economic downturn. Copyright © 2011 John Wiley & Sons, Ltd.