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The effects of price on the consequences of alcohol use and abuse ABSTRACT Economists
have examined the impact of alcohol prices on various
outcomes related to alcohol consumption, including nonfatal
and fatal motor vehicle accidents, other accidents, liver
cirrhosis, and other alcohol-related mortality, crime, and
education attainment. Price, in the context of this
research, includes not only the monetary price of alcohol
beverages, but also a wide variety of other "costs" of
drinking and heavy drinking, including the time spent
obtaining alcoholic beverages and the legal costs associated
with drinking and related behavior. This research clearly
demonstrates that increases in the monetary prices of
alcoholic beverages, which could be achieved by increasing
taxes on alcohol, can significantly reduce many of the
problems associated with alcohol use and abuse. In addition,
control policies that raise other "costs" of drinking,
including reduced availability of alcoholic beverages,
higher legal drinking ages, and others, are also effective
in reducing the consequences of alcohol use and abuse.
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