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Health Consequences of Easier A ccess Alcohol: New Zealand Evidence

Fall 2013: Econ 339 Final Presentation. Christopher R. Pattwell November 21 2013 . Health Consequences of Easier A ccess Alcohol: New Zealand Evidence.

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Health Consequences of Easier A ccess Alcohol: New Zealand Evidence

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  1. Fall 2013: Econ 339 Final Presentation Christopher R. Pattwell November 21 2013 Health Consequences of Easier Access Alcohol: New Zealand Evidence Conover, Emily & Scrimgeour, Dean. “Journal of Health Economics:” Health Consequences of Easier Access Alcohol: New Zealand Evidence. Volume 32, Issue 3. May 2013 (pg. 570-585) Total:_________

  2. Liquor Laws • These Laws deal with when and where alcohol can be consumed • Most prominently dealing with the Minimum Purchasing age of Alcohol (MPA)

  3. MPA • Most countries maintain 18 • European countries (16 yrs. old) • United States • 60’s & 70’s • 1984 National Minimum Drinking age act • New Zealand’s Sale of Liquor Act (1999) • Current debate on reversal

  4. Article Journal of Health Economics Volume 32, Issue 3 pages 570-585 Health Consequences of Easier Access to Alcohol: New Zealand Evidence By: Emily Conover & Dean Scrimgeour

  5. Article’s Objective • Did lowering MPA of alcohol have negative health affects? • Hospitalizations • Drug-Alcohol Substitution affect • Age v. Experience

  6. Research Techniques • Difference-in-difference • Regression Discontinuity • *Not covered by research • Various indirect Costs and Benefits of Alcohol

  7. Hospitalizations

  8. Hospitalizations • Increase in Alcohol related hospitalizations (18 & 19 year olds) • Males-> 29% increase • Females (18-19 years old 16% increase) • Other groups remain unaffected

  9. Hospitalizations Figure 3: Alcohol Related Hospitalizations, Males, 1993-2006 *females follow a very similar trend

  10. Hospitalizations Hospitalizations by Month Relative to Minimum Purchasing Act (Males)

  11. Hospitalizations Females

  12. In Conclusion After MPA decrease… • Alcohol related Hospitalizations increase • Is this because of the MPA decrease? -OR- • Is the Increase in Hospitalizations resulted from increase willingness to go because its no longer illegal?

  13. Substitution Affect

  14. Substitution Affect • 1980’s legal drinking age increase (United States) => an increase in drug use • Would this hold true in New Zealand?

  15. Substitution Affect

  16. In Conclusion • Studies showed no correlation between Drug use and the new MPA • In conclusion, there is no substitution or complementation relationship between Alcohol & Drugs

  17. Age V. Experience

  18. Age V. Experience

  19. Age V. Experience • Each year after Minimum Purchasing Age (MPA), alcohol related Hospitalizations decreased by 8.6%. • Which is Greater than the 22.4% increase with the MPA changing to 18 years old.

  20. Age V. Experience

  21. In Conclusion • This suggests… • Harms from alcohol are shifts with MPA not increases • Health affects could only be a short term shock and magnified because it was unforeseen. • Experience is a factor!

  22. Result of Sale of Liquor Act (1999)… • Increased alcohol related hospitalizations • Doesn’t affect Other Groups • Drug & Alcohol = No Correlation • Experience > Age

  23. After seeing the research “Understanding the surge in alcohol-related health problems must go beyond the drinking age.” Any Questions?

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