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. 2002 Sep;11(6):485-91.
doi: 10.1002/hec.748.

Rational addiction to alcohol: panel data analysis of liquor consumption

Badi H Baltagi  1 , James M Griffin
Affiliations

Rational addiction to alcohol: panel data analysis of liquor consumption

Badi H Baltagi et al. Health Econ. 2002 Sep.

Abstract

Utilizing a panel data set of 42 states over the period 1959-1994, this paper estimates a rational addiction model for liquor consumption for the US. The empirical evidence is consistent with the rational addiction hypothesis proposed by Becker and Murphy. However, the results are sensitive to the assumption of homogeneity across states or over time.

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