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Beer Taxation and Alcohol-Related Traffic Fatalities

Brent D. Mast, Bruce L. Benson and David W. Rasmussen
Southern Economic Journal
Vol. 66, No. 2 (Oct., 1999), pp. 214-249
DOI: 10.2307/1061141
Stable URL: http://www.jstor.org/stable/1061141
Page Count: 36
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Beer Taxation and Alcohol-Related Traffic Fatalities
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Abstract

Most studies of alcohol-related traffic fatalities find beer taxes to be an important policy variable. This is surprising since beer taxes only have a small impact on consumption and heavy drinkers are the least responsive to prices. This study shows that the tax relationship is not robust across data periods and that it reflects missing variable biases. While lack of control for law enforcement effort does not appear to bias tax coefficients, failure to include determinants of alcohol consumption other than taxes and drinking age and/or factors that simultaneously determine drinking behavior and political support for alcohol taxes apparently do.

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