ECONOMIC-CONDITIONS AND ALCOHOL-PROBLEMS

This study investigates the relationship between macroeconomic conditi ons and two alcohol-related outcomes - liquor consumption and highway vehicle fatalities. Fixed-effect models are estimated for the 48 conti guous states over the 1975-1988 time period. Alcohol consumption and t raffic deaths vary procyclically, with a major portion of the effect o f economic downturns attributed to reductions in incomes, rather than employment. The intake of hard liquor is the most sensitive to the sta te of the macroeconomy. There is no evidence, however, that fluctuatio ns in economic conditions have a disproportionate impact on the drunk- driving of young adults.