Wednesday, February 24, 2010

Alcohol Tax

A study of Alaska taxes find that as alcohol taxes increase the number of alcohol deaths (alcohol poising and alcoholic liver disease) decreased. This would be consistent with the Prin. of Micro focus on how taxes raise prices and reduce quantity demanded.

Yet, what would be interesting to find is what effect does an increase in alcohol taxes have on alcohol related traffic accidents and alcohol related crime - such as underage drinking and driving while intoxicated, which are not directly studied in the article.

1 comment:

Alyssa said...

I think this blog could be so much more popular/interesting if you added some "kernel of truth, bushel of embelisment" (economics-related) stories.