Menus Subscribe Search

Follow us


Quick Studies

beer-taps

(Photo: Kellis/Shutterstock)

Could Taxes on Alcohol Promote Economic Growth?

• March 14, 2014 • 10:00 AM

(Photo: Kellis/Shutterstock)

All of those hangovers could be costing the country a lot of workdays.

A healthy economy is a fast-growing one, at least according to conventional wisdom.

So what constrains this all-important economic expansion? Two economists think part of the explanation is a failing familiar to underachievers everywhere: too much beer drinking.

“The cost of drinking may indeed be borne by society as a whole.”

Analyzing state-level data covering the years 1971 to 2007, including excise taxes levied on beer, the University of Connecticut’s Resul Cesur and Inas Rashad Kelly of Queens College discovered an inverse relationship between the amount of suds quaffed and economic growth.

Writing in the journal Economic Inquiry, they point to such factors as lost workdays and lower productivity on the part of workers with hangovers, and suggest increases in alcohol excise taxes could promote economic growth by discouraging drinking.

“Our results,” they conclude, “suggest that the cost of drinking may indeed be borne by society as a whole.”

Sounds like the next round is on all of us.


This post originally appeared in the March/April 2014 issue of Pacific Standard as “Economic Gloom on Tap.” For more, subscribe to our print magazine.

Tom Jacobs
Staff writer Tom Jacobs is a veteran journalist with more than 20 years experience at daily newspapers. He has served as a staff writer for The Los Angeles Daily News and the Santa Barbara News-Press. His work has also appeared in The Los Angeles Times, Chicago Tribune, and Ventura County Star.

More From Tom Jacobs

A weekly roundup of the best of Pacific Standard and PSmag.com, delivered straight to your inbox.

Recent Posts

October 2 • 9:00 AM

For Memory, Curiosity Is Its Own Reward

A new study suggests a neural link between curiosity, motivation, and memory.


October 2 • 8:00 AM

Can Prisons Predict Which Inmates Will Try to Escape?

And what can they do to prevent it?


October 2 • 6:00 AM

How Do We Know Our Environmental Laws Are Working?

Ask a great white shark.


October 2 • 5:00 AM

Give Us This Day Our Daily Brands

Researchers find identifying with brand-name products reduces religiosity.


October 2 • 4:00 AM

Why Can’t Anyone Break the Women’s Marathon Record?

Paula Radcliffe set the world record in 2003. Since then? No one’s come within three minutes of her mark.


October 1 • 2:00 PM

Most People With Addiction Simply Grow Out of It. Why Is This Widely Denied?

The idea that addiction is typically a chronic, progressive disease that requires treatment is false, the evidence shows. Yet the “aging out” experience of the majority is ignored by treatment providers and journalists.


October 1 • 1:00 PM

Midlife Neuroticism Linked to Alzheimer’s Disease in Old Age

New research from Sweden suggests that the personality dimension is connected to who ultimately suffers from late-in-life dementia.



October 1 • 11:11 AM

The Creative Class Boondoggle in Downtown Las Vegas

On Tony Hsieh and the pseudoscience of “collisions.”


October 1 • 9:14 AM

Mysterious Resting State Networks Might Be What Allow Different Brain Therapies to Work

Deep brain stimulation and similar treatments target the hubs of larger resting-state networks in the brain, researchers find.


October 1 • 6:00 AM

Would You Like a Subscription With Your Coffee?

A new app hopes to unite local coffee shops while helping you find a cheap cup of good coffee.


October 1 • 4:00 AM

How to Plant a Library

Somewhere outside of Oslo, there are 1,000 newly planted spruce trees. One hundred years from now, if everything goes to plan, they’ll be published together as 100 pieces of art.



September 30 • 10:09 AM

Trust Is Waning, and Inequality May Be to Blame

Trust in others and confidence in institutions is declining, while economic inequality creeps up, a new study shows.


September 30 • 8:00 AM

The Psychology of Penmanship

Graphology: It’s all (probably) bunk.



September 30 • 6:00 AM

The Medium Is the Message, 50 Years Later

Five decades on, what can Marshall McLuhan’s Understanding Media tell us about today?


September 30 • 4:00 AM

Grad School’s Mental Health Problem

Navigating the emotional stress of doctoral programs in a down market.


September 29 • 1:21 PM

Conference Call: Free Will Conference


September 29 • 12:00 PM

How Copyright Law Protects Art From Criticism

A case for allowing the copyright on Gone With the Wind to expire.


September 29 • 10:00 AM

Should We Be Told Who Funds Political Attack Ads?

On the value of campaign finance disclosure.


September 29 • 8:00 AM

Searching for a Man Named Penis

A quest to track down a real Penis proves difficult.


September 29 • 6:00 AM

Why Do So Many People Watch HGTV?

The same reason so many people watch NCIS or Law and Order: It’s all a procedural.


September 29 • 4:00 AM

The Link Between Depression and Terrorism

A new study from the United Kingdom finds a connection between depression and radicalization.


September 26 • 4:00 PM

Fast Track to a Spill?

Oil pipeline projects across America are speeding forward without environmental review.


Follow us


For Memory, Curiosity Is Its Own Reward

A new study suggests a neural link between curiosity, motivation, and memory.

Mysterious Resting State Networks Might Be What Allow Different Brain Therapies to Work

Deep brain stimulation and similar treatments target the hubs of larger resting-state networks in the brain, researchers find.

Trust Is Waning, and Inequality May Be to Blame

Trust in others and confidence in institutions is declining, while economic inequality creeps up, a new study shows.

Dopamine Might Be Behind Impulsive Behavior

A monkey study suggests the brain chemical makes what's new and different more attractive.

School Counselors Do More Than You’d Think

Adding just one counselor to a school has an enormous impact on discipline and test scores, according to a new study.

The Big One

One company, Amazon, controls 67 percent of the e-book market in the United States—down from 90 percent five years ago. September/October 2014 new-big-one-5

Copyright © 2014 by Pacific Standard and The Miller-McCune Center for Research, Media, and Public Policy. All Rights Reserved.