Alcohol consumption by individuals in the United States: a sample selection approach

Abstract

We investigate the socio-economic determinants of alcohol consumption in the United States with a Sample Selection Model (SSM). The dependent variable is log-transformed that facilitates the estimation of the model. In addition, marginal effects of explanatory variables are calculated in both SSM and Two-Part Model (TPM). Our results suggest that the use of proper marginal effect formulae is important, and that the socio-economic variables play important roles in alcohol consumption. The probability of drinking decreases with age, income and education. Men are more likely to drink and drink more than women. Marriage decreases drinking, and drinking are more likely to occur on weekends.

Keywords:

• sample selection
• alcohol consumption
• log-transformed
• two-part model

JEL Classification:

• C34
• D12

Notes

¹ Heavy drinking refers to more than two drinks per day for men and one drink for women. Binge drinking refers to more than four drinks during a single occasion for men and more than three drinks for women.

² Marginal effects of TPM models are not presented due to space limitations. They are available from authors upon request.