%0 Journal Article %J Health Econ %D 2013 %T Understanding heterogeneity in price elasticities in the demand for alcohol for older individuals. %A Padmaja Ayyagari %A Deb, Partha %A Jason M. Fletcher %A William T Gallo %A Jody L Sindelar %K Adult %K Aged %K Aged, 80 and over %K Alcohol Drinking %K Alcoholic Beverages %K Behavior %K Body Height %K Costs and Cost Analysis %K Female %K Health Status %K Humans %K Male %K Middle Aged %K Models, Econometric %K Socioeconomic factors %K Taxes %K United States %X

This paper estimates the price elasticity of demand for alcohol using Health and Retirement Study data. To account for unobserved heterogeneity in price responsiveness, we use finite mixture models. We recover two latent groups, one is significantly responsive to price, but the other is unresponsive. The group with greater responsiveness is disadvantaged in multiple domains, including health, financial resources, education and perhaps even planning abilities. These results have policy implications. The unresponsive group drinks more heavily, suggesting that a higher tax would fail to curb the negative alcohol-related externalities. In contrast, the more disadvantaged group is more responsive to price, thus suffering greater deadweight loss, yet this group consumes fewer drinks per day and might be less likely to impose negative externalities.

%B Health Econ %I 22 %V 22 %P 89-105 %8 2013 Jan %G eng %N 1 %1 http://www.ncbi.nlm.nih.gov/pubmed/22162113?dopt=Abstract %2 PMC3641566 %4 Alcohol/Price elasticity/alcohol taxation/Public Policy/Elasticity of demand/heterogeneous policy responses/Fiscal policy/Fiscal policy/latent groups %$ 69734 %R 10.1002/hec.1817 %0 Journal Article %J J Health Econ %D 2011 %T The effect of job loss on overweight and drinking. %A Deb, Partha %A William T Gallo %A Padmaja Ayyagari %A Jason M. Fletcher %A Jody L Sindelar %K Alcohol Drinking %K Body Mass Index %K Female %K Humans %K Longitudinal Studies %K Male %K Middle Aged %K Overweight %K Unemployment %K United States %X

This paper examines the impact of job loss due to business closings on body mass index (BMI) and alcohol consumption. We suggest that the ambiguous findings in the extant literature may be due in part to unobserved heterogeneity in response and in part due to an overly broad measure of job loss that is partially endogenous (e.g., layoffs). We improve upon this literature using: exogenously determined business closings, a sophisticated estimation approach (finite mixture models) to deal with complex heterogeneity, and national, longitudinal data from the Health and Retirement Study. For both alcohol consumption and BMI, we find evidence that individuals who are more likely to respond to job loss by increasing unhealthy behaviors are already in the problematic range for these behaviors before losing their jobs. These results suggest the health effects of job loss could be concentrated among "at risk" individuals and could lead to negative outcomes for the individuals, their families, and society at large.

%B J Health Econ %I 30 %V 30 %P 317-27 %8 2011 Mar %G eng %N 2 %1 http://www.ncbi.nlm.nih.gov/pubmed/21288586?dopt=Abstract %2 PMC3086369 %4 Job loss/Drinking/Business closings/Finite mixture models %$ 25370 %R 10.1016/j.jhealeco.2010.12.009 %0 Report %D 2009 %T Job Loss: Eat, drink and try to be merry? %A Deb, Partha %A William T Gallo %A Padmaja Ayyagari %A Jason M. Fletcher %A Jody L Sindelar %K Employment and Labor Force %K Health Conditions and Status %X This paper examines the impact of job loss from business closings on body mass index (BMI) and alcohol consumption. We improve upon extant literature by using: exogenously determined business closings, a sophisticated estimation approach (finite mixture models) to deal with complex heterogeneity, and national, longitudinal data (Health and Retirement Study). For both alcohol consumption and BMI, we find evidence that individuals who are more likely to respond to job loss by increasing unhealthy behaviors are already in the problematic range for these behaviors before losing their jobs. Thus health effects of job loss could be concentrated among at risk individuals. %B NBER Working Paper %I The National Bureau of Economic Research %C Cambridge, MA %G eng %L newpubs20090908_w15122.pdf %4 Job Loss/Body Mass Index/Alcohol Drinking %$ 20750 %R 10.3386/w15122 %0 Report %D 2009 %T Sin Taxes: Do Heterogeneous Responses Undercut Their Value? %A Padmaja Ayyagari %A Deb, Partha %A Jason M. Fletcher %A William T Gallo %A Jody L Sindelar %K Health Conditions and Status %K Methodology %K Public Policy %X This paper estimates the price elasticity of demand for alcohol using Health and Retirement Survey data. To account for unobserved heterogeneity in price responsiveness, we use finite mixture models. We recover two latent groups, one is significantly responsive to price but the other is unresponsive. Differences between these two groups can be explained in part by the behavioral factors of risk aversion, financial planning horizon, forward looking and locus of control. These results have policy implications. Only a subgroup responds significantly to price. Importantly, the unresponsive group drinks more heavily, suggesting that a higher price could fail to curb drinking by those most likely to cause negative externalities. In contrast, those least likely to impose costs on others are more responsive, thus suffering greater deadweight loss yet with less prevention of negative externalities. %B NBER Working Paper %I The National Bureau of Economic Research %C Cambridge, MA %G eng %4 Alcohol Abuse/methodology/Public Policy %$ 25530 %R 10.3386/w15124