Dissertations, Theses, and Capstone Projects

Date of Degree

6-2025

Document Type

Doctoral Dissertation

Degree Name

Doctor of Philosophy

Program

Economics

Advisor

Jonathan R. Peters

Committee Members

Timothy Goodspeed

Bryan Weber

Geoffrey Paulin

Subject Categories

Food and Beverage Management | Health Economics | Public Economics

Keywords

alcohol taxation, on-premise, off-premise, wine, beer, Direct-to-Consumer shipment

Abstract

Alcohol consumption and use is not just a harmful behavior or a potential recreational activity, but it also may form a way of self-identification.

Each type of beverage apparently has their own profile of dedicated drinkers. Those drinkers are also apparently loyal to the location of purchase. However, one may also consider whether consumption in one location is a predictor of consumption in the other location. This distinct tendency highlights the intricacy of consumption patterns, as on-premise and off-premise consumption simultaneously serve as complements and substitutes in the long run in terms of both location and type of beverage.

The selection of a location for the purchase of an alcoholic beverage is not the sole decision that displays this paradoxical combination. Although individuals remain loyal to a specific type of beverage, the fact that they purchased a category of alcoholic beverage often suggests that they are also inclined to consume various other categories of alcoholic beverages.

This notion should be closely followed by policy makers, as a change or varying regulation on public policy may result in a shift to the other types of beverage or location.

In addition, the sales points and regulation of alcoholic beverages vary by state and the regulations change over time. This study seeks to explore the impact of the regulations on consumption and use according to location and type of beverage.

Permitting direct shipment of wine reduces the consumption of beer. The state taxation does not tend to affect consumption choices. The only effect observed is the reduction in the consumption of other alcoholic beverages in states with higher wine taxes.

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