During the 1980s, per capita consumption of absolute ethanol in the U.S. declined by 14 percent. In 1979, consumption was 2.94 gallons per capita compared to 2.52 gallons in 1989. The objective of this paper is to explain the decline in consumption, both for total ethanol and by beverage. The...

Time-series models of the demand for alcoholic beverages have been criticized for use of annual data; omitted variables; mis-measurement of advertising; simultaneous equations bias; and inadequate attention to nonstationarity and dynamics. This paper reappraises the relationship between alcohol...

Using panel data for a cross-section of countries, several previous studies estimate the effect of advertising bans on cigarette consumption. These studies suffer from three general problems: (1) structural change in cigarette demand functions; (2) endogeneity of advertising bans; and (3)...