Jump to ContentJump to Main Navigation
The Economics of Beer$
Users without a subscription are not able to see the full content.

Johan F.M. Swinnen

Print publication date: 2011

Print ISBN-13: 9780199693801

Published to Oxford Scholarship Online: January 2012

DOI: 10.1093/acprof:oso/9780199693801.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 07 May 2021

Cold Comfort in Hard Times: Do People Drink More Beer during Recessions?

Cold Comfort in Hard Times: Do People Drink More Beer during Recessions?

(p.107) 6 Cold Comfort in Hard Times: Do People Drink More Beer during Recessions?
The Economics of Beer

Donald G. Freeman

Oxford University Press

Do people drink more in hard times? Psychological theories suggest that alcohol consumption increases during recessions as a response to the stresses of economic downturns. In contrast, the conventional view among economists is that beer is a ‘normal’ good: when incomes go up, so does beer consumption. This chapter looks at U.S. state-level data as provided by The Beer Institute to estimate pooled time-series models of annual beer consumption regressed on economic and demographic variables. The empirical analysis confirms the economists' view, with beer consumption falling during recessions. The effect of economic fluctuations on consumption is rather small however; demographics have a far more significant and material effect, with larger shares of young adults in states' populations implying greater consumption of beer per capita.

Keywords:   alcohol consumption, pooled time-series, beer, recessions, normal goods, demographics

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .