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Alcohol Consumption and Liver Cirrhosis Mortality: New Evidence from a Panel Data Analysis for Sixteen European Countries*

Published online by Cambridge University Press:  08 June 2012

Jan Bentzen  and
Valdemar Smith
Jan Bentzen
Affiliation:
Department of Economics, Aarhus University, Hermodsvej 22, 8230 Aabyhoj,Denmark, e-mail: jb@asb.dk
Valdemar Smith
Affiliation:
Department of Economics, Aarhus University, Hermodsvej 22, 8230 Aabyhoj,Denmark, e-mail: vs@asb.dk
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Abstract

Empirical evidence gives support to a close association between liver cirrhosis mortality and the intake of alcohol. The present analysis draws on a panel data set for sixteen European countries from 1970–2006 where both alcohol consumption and liver cirrhosis seem best described as trend-stationary variables. Consequently, a flexible non-linear functional form with country fixed effects including linear trends is applied in the analysis. It is argued that fewer restrictions on the relationship between liver cirrhosis mortality and alcohol consumption are appropriate for empirical modeling. The conclusion is that the total level of alcohol consumption as well as the specific beverages – beer, wine and spirits – contribute to liver cirrhosis mortality, but the present study also reveals that addressing the question of panel unit roots directly and in this case subsequently applying a trend-stationary modeling methodology reduces the estimates of the impacts from alcohol consumption to liver cirrhosis. Finally, more restrictive alcohol policies seem to have influenced the country-specific development in cirrhosis mortality positively. (JEL Classification: 110)

Type
Articles
Information
Journal of Wine Economics , Volume 6 , Issue 1 , 2011 , pp. 67 - 82
Copyright
Copyright © American Association of Wine Economists 2011

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