In recent years, economists have paid much attention to the demand for
alcohol and the negative externalities associated with excessive drin
king. Largely ignored in the literature is the link between alcohol us
e and domestic violence. Given the established positive relationship b
etween alcohol consumption and acts of violence, the purpose of this p
aper is to examine the role that changes in the determinants of the de
mand for alcohol may play in reducing the incidence of violence aimed
at children. Data on violence come from the 1976 Physical Violence in
American Families survey. We estimate; a model in which violent outcom
es are affected by the state excise tax rate on beer, illegal drug pri
ces, and other regulatory variables such as availability measures and
laws restricting the advertising of alcohol. Results show that increas
ing the tax on beer can be an effective policy tool in reducing violen
ce. Laws designed to make obtaining beer more difficult also may be ef
fective in reducing violence, while restrictions on advertising and in
creases in illegal drug prices have no effects.