Alcohol prohibition and addictive consumption in India

Type Working Paper - Leverhulme Centre for Research on Globalisation and Economic Policy (GEP), University of Nottingham
Title Alcohol prohibition and addictive consumption in India
Author(s)
Publication (Day/Month/Year) 2009
URL http://dspace.cigilibrary.org/jspui/bitstream/123456789/13422/1/Alcohol Prohibition and Addictive​Consumption in India.pdf?1
Abstract
This paper examines the e?ects of alcohol prohibition on the consumption of alcohol and other addictive goods. Using a series of household expenditure surveys for India, it ?nds that alcohol prohibition had di?erential e?ects on alcohol consumption by alcohol type and sector. In particular prohibition reduced consumption of arrack, IMFL, and beer in both urban and rural sectors, although its impact on the rural sector was lower. In addition, prohibition reduced toddy consumption in urban households. The relationship between alcohol and other addictive goods is also examined using prohibition as an instrument for alcohol consumption. The results suggest signi?cant associations between alcohol and these items with the direction of the relationship di?ering by alcohol type. Consequently prohibition also had spill-over e?ects on the consumption of these items and is associated with an increase in bidi and cigarette consumption and a decrease in leaf tobacco and pan consumption.

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