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Alcohol Advertising Bans and Alcohol Abuse: An International Perspective

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  • Henry Saffer
Abstract
The purpose of this paper is to empirically examine the effect on alcohol abuse of banning broadcast advertising of alcoholic beverages. The effect of a ban cannot be studied using data from one country because the adoption of new advertising bans is an infrequent event and requires many years for adjustment. However, an international data set can be used since there is considerable variation in the use of advertising bans across countries. The data used in this study are a pooled time series from 17 countries for the period 1970 to 1983. The empirical measures of alcohol abuse are alcohol consumption, liver cirrhosis mortality rates, and highway fatality rates. The cultural factors which influence alcohol use are measured by sets of country dummy variables. The empirical results show that countries with bans on spirits advertising have about 10 percent lower alcohol consumption and motor vehicle fatality rates than countries with no bans. The results also show that countries with bans on beer and wine advertising have about 23 percent lower alcohol consumption and motor vehicle fatality rates than countries with only bans on spirits advertising.

Suggested Citation

  • Henry Saffer, 1989. "Alcohol Advertising Bans and Alcohol Abuse: An International Perspective," NBER Working Papers 3052, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3052
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    1. Philip J. Cook & George Tauchen, 1982. "The Effect of Liquor Taxes on Heavy Drinking," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 379-390, Autumn.
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    Cited by:

    1. Nuria Badenes-Plá & Andrew M. Jones, 2003. "Addictive goods and taxes: A survey from an economic perspective," Hacienda Pública Española / Review of Public Economics, IEF, vol. 167(4), pages 123-153, December.
    2. Henry Saffer, 2000. "Alcohol Advertising And Motor Vehicle Fatalities," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 431-442, August.
    3. Gannon, Brenda & Layte, Richard & McGregor, Pat & Madden, David & Nolan, Anne & O'Neill, Ciaran & Smith, Samantha, 2007. "The Provision and Use of Health Services, Health Inequalities and Health and Social Gain," Research Series, Economic and Social Research Institute (ESRI), number BMI196 edited by Nolan, Brian.
    4. Cook, Philip J. & Moore, Michael J., 2000. "Alcohol," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 30, pages 1629-1673, Elsevier.
    5. Michael Grossman & Sara Markowitz, 2001. "Alcohol regulation and violence on college campuses," Chapters, in: Michael Grossman & Chee-Ruey Hsieh (ed.), The Economic Analysis of Substance Use and Abuse, chapter 11, pages 257-290, Edward Elgar Publishing.
    6. Henry Saffer & Dhaval Dave, 2006. "Alcohol advertising and alcohol consumption by adolescents," Health Economics, John Wiley & Sons, Ltd., vol. 15(6), pages 617-637, June.
    7. Emmanouil Mentzakis & Bayard Roberts & Marc Suhrcke & Martin McKee, 2016. "Psychological Distress and Problem Drinking," Health Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 337-356, March.
    8. David (David Patrick) Madden, 2007. "Health interventions and risky behaviour," Working Papers 200709, School of Economics, University College Dublin.
    9. Seldon, Barry J. & Jewell, R. Todd & O'Brien, Daniel M., 2000. "Media substitution and economies of scale in advertising," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1153-1180, December.
    10. Conniffe, Denis & McCoy, Daniel, 1993. "Alcohol Use in Ireland: Some Economic and Social Implications," Research Series, Economic and Social Research Institute (ESRI), number GRS160.
    11. Kinnucan, Henry W. & Myrland, Oystein, 2002. "Relationship Between Partial and Total Responses to Advertising with Application to U.S. Meats," Research Bulletins 122634, Cornell University, Department of Applied Economics and Management.
    12. Eamon Molloy, 2016. "This Ad is for You: Targeting and the Effect of Alcohol Advertising on Youth Drinking," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 148-164, February.
    13. Gsottbauer, Elisabeth & van den Bergh, Jeroen C.J.M., 2014. "Environmental policy when pollutive consumption is sensitive to advertising: Norms versus status," Ecological Economics, Elsevier, vol. 107(C), pages 39-50.
    14. Nelson, Jon P. & Young, Douglas J., 2001. "Do Advertising Bans Work? An International Comparison," Working Papers 6-01-1, Pennsylvania State University, Department of Economics.
    15. Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1996. "The impact of alcohol consumption and marijuana use on high school graduation," Health Economics, John Wiley & Sons, Ltd., vol. 5(1), pages 77-92, January.
    16. Sara Markowitz, 2001. "Criminal violence and alcohol beverage control: evidence from an international study," Chapters, in: Michael Grossman & Chee-Ruey Hsieh (ed.), The Economic Analysis of Substance Use and Abuse, chapter 13, pages 309-334, Edward Elgar Publishing.
    17. David (David Patrick) Madden, 2007. "Health interventions and risky behaviour," Open Access publications 10197/791, School of Economics, University College Dublin.
    18. Anderson, D. Mark, 2010. "Does information matter? The effect of the Meth Project on meth use among youths," Journal of Health Economics, Elsevier, vol. 29(5), pages 732-742, September.
    19. Michael Grossman, 2005. "Individual Behaviours and Substance Use: The Role of Price," Advances in Health Economics and Health Services Research, in: Substance Use: Individual Behaviour, Social Interactions, Markets and Politics, pages 15-39, Emerald Group Publishing Limited.
    20. Christine Godfrey, 1993. "Banning tobacco advertising: Can health economists contribute to the debate?," Health Economics, John Wiley & Sons, Ltd., vol. 2(1), pages 1-5, April.
    21. Frank, Mark W., 2008. "Media substitution in advertising: A spirited case study," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 308-326, January.
    22. Cook, Philip J. & Moore, Michael J., 1999. "Alcohol," Working Papers 156, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    23. Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1993. "The Impact of Alcohol Consumption and Marijuana Use on High School Graduation," NBER Working Papers 4497, National Bureau of Economic Research, Inc.
    24. Nelson, Jon P., 2001. "Alcohol Advertising and Advertising Bans: A Survey of Research Methods, Results, and Policy Implications," Working Papers 7-01-2, Pennsylvania State University, Department of Economics.
    25. Frank J. Chaloupka & Michael Grossman & Warren K. Bickel & Henry Saffer, 1999. "Introduction to "The Economic Analysis of Substance Use and Abuse: An Integration of Econometrics and Behavioral Economic Research"," NBER Chapters, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometric and Behavioral Economic Research, pages 1-14, National Bureau of Economic Research, Inc.

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