This paper investigates whether consumption of alcoholic beverages has a passive effect on the distribution of resources among household members. The term passive drinking evokes the negative impact that the drinking behavior of a household member may have on other household members’ well-being. To investigate this issue we rely on the collective framework and estimate a structural collective demand system using Italian micro data. The results show that a high level of alcohol consumption of one household member significantly affects the allocation of household resources and may have quasi-external effects. Public costs that are transferred to other household members should be taken into account when designing social policies.

The Passive Drinking Effect: A Collective Demand Application. WP Series University of Verona Department of Economics (ISSN: 2036-2919 (paper), 2036-4679 (online)), 05/2012

MENON, Martina;PERALI, Carlo Federico
2012

Abstract

This paper investigates whether consumption of alcoholic beverages has a passive effect on the distribution of resources among household members. The term passive drinking evokes the negative impact that the drinking behavior of a household member may have on other household members’ well-being. To investigate this issue we rely on the collective framework and estimate a structural collective demand system using Italian micro data. The results show that a high level of alcohol consumption of one household member significantly affects the allocation of household resources and may have quasi-external effects. Public costs that are transferred to other household members should be taken into account when designing social policies.
collective model; sharing rule; passive drinking
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11562/476760
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