Alcohol Taxes and Birth Outcomes

This study examines the relationships between alcohol taxation, drinking during pregnancy, and infant health. Merged data from the US Natality Detailed Files, as well as the Behavioral Risk Factor Surveillance System (1985–2002), data regarding state taxes on beer, wine, and liquor, a state- and yea...

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Bibliographic Details
Main Author: Ning Zhang
Format: Article
Language:English
Published: MDPI AG 2010-04-01
Series:International Journal of Environmental Research and Public Health
Subjects:
Online Access:http://www.mdpi.com/1660-4601/7/5/1901/
Description
Summary:This study examines the relationships between alcohol taxation, drinking during pregnancy, and infant health. Merged data from the US Natality Detailed Files, as well as the Behavioral Risk Factor Surveillance System (1985–2002), data regarding state taxes on beer, wine, and liquor, a state- and year-fixed-effect reduced-form regression were used. Results indicate that a one-cent ($0.01) increase in beer taxes decreased the incidence of low-birth-weight by about 1–2 percentage points. The binge drinking participation tax elasticity is −2.5 for beer and wine taxes and −9 for liquor taxes. These results demonstrate the potential intergenerational impact of increasing alcohol taxes.
ISSN:1660-4601