Liquid Assets? The Short-Run Liabilities of Binge Drinking

Marco Francesconi, Jonathan James

Research output: Contribution to journalArticle

Abstract

We estimate the effect of binge drinking on road accidents, accident and emergency (A&E) attendances and arrests using a variety of unique English data and a two-sample instrumental variables estimation procedure. Drinking 10+ units of alcohol in a single session increases road accidents by 18.6%, injury-related A&E attendances by 6.6% and arrests by 71%. The marginal increase from eight to 10+ alcoholic units implies nearly 6,100 extra road accidents every year, 63,000 additional A&E attendances and 100,000 additional arrests. The externality per mile driven by a binge drinker is about five pence and the punishment that internalises this externality is equivalent to a fine of £22,800 per drunk driving arrest.

Original languageEnglish
Pages (from-to)2090-2136
Number of pages47
JournalThe Economic journal
Volume129
Issue number621
Early online date18 Jul 2018
DOIs
Publication statusPublished - 1 Jul 2019

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Short-run
Liability
Attendance
Road accidents
Assets
Binge drinking
Externalities
Emergency
Accidents
Drinking
Drunk driving
Punishment
Instrumental variable estimation
Alcohol

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Liquid Assets? The Short-Run Liabilities of Binge Drinking. / Francesconi, Marco; James, Jonathan.

In: The Economic journal, Vol. 129, No. 621, 01.07.2019, p. 2090-2136.

Research output: Contribution to journalArticle

Francesconi, Marco ; James, Jonathan. / Liquid Assets? The Short-Run Liabilities of Binge Drinking. In: The Economic journal. 2019 ; Vol. 129, No. 621. pp. 2090-2136.
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