The passive drinking effect: Evidence from Italy

Pre-print, Working paper: This paper investigates whether consumption of alcoholic beverages affects distribution of resources among household members. We refer to this effect, highlighting the negative impact that alcohol addicted individuals can have on other household members wellbeing. To investigate this issue we rely on the collective framework and estimate a structural collective demand system. Our results show that for Italian households a high level of alcohol consumption influences the allocation of resources in favour of the husband, with a larger effect in poor households. This evidence implies that alcohol consumption is not only an individual problem. Public costs that are transferred to the other household members should be taken into account when designing social policies.

Author(s)

Martina Menon, Federico Perali, Luca Piccoli

Date of publication
  • 2008
Keywords JEL
C31 C34 C51 D12 D13
Keywords
  • Collective model
  • Demand system
  • Sharing rule
  • Alcohol consumption
  • Intra-household resources distribution
  • Policy implications
Internal reference
  • PSE Working Papers n°2008-33
Version
  • 1