Economic analysis aids alcohol research

Abstract

Economic research contributes to our understanding of alcohol use and the prevention and treatment of alcohol-related problems in several ways. This article reviews three areas in which the tools of economic analysis have produced significant insights in recent years. First, economic researchers have analyzed the effects of beverage prices and taxation on alcohol consumption and on adverse consequences associated with alcohol use. Second, analyses of the costs and cost-effectiveness of treatment for alcohol use disorders have provided insight into the long-term costs and benefits of alternative approaches to alcoholism treatment. Finally, studies have incorporated economic techniques in estimating the overall magnitude of the burden placed on society by the misuse of alcoholic beverages.

Figure 1

Inflation adjusted alcoholic beverage prices 1978–1996. SOURCE: Data obtained from the Bureau of Labor Statistics Web site (http://stats.bls.gov/sahome.html) December 1999.

Figure 2

Per Capita alcohol consumption by beverage type, United States, 1974–1997. SOURCE: Nelson 1997. Reprinted with permission from Empirical Economics, Vol. 22, pp. 83–102, 1997 Copyright 1997, Springer-Verlag GmbH & Co., Heidelberg, Germany.