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Macroeconomics Determinants of Alcohol Abuse in Russia (Regional Aspect)

Student: Kipina Sof`ya

Supervisor: Tatiana V. Kossova

Faculty: Faculty of Economic Sciences

Educational Programme: Master

Year of Graduation: 2014

<p>Subject of this study is the level of alcohol consumption. Object is population of Russia. The main purposes here are: 1) to identify the principal trends in alcohol consumption in Russia, 2) to identify the main factors, causing the inter-regional differences in alcohol consumption and 3) to estimate their dynamics effect. Because of very high regional differences, in this study we research regional data as well as average data for Russia. In the first chapter we start with a study of previous research on this subject in the world and, particularly, in the Russia. We describe trends and structure of regional alcohol consumption. With the base of previous researchers and our analyses, we consider hypotheses, which describe correlation between macroeconomic factors and alcohol consumption. Firstly, we study cross sectional regression with regional data for 11 years (2002-2012). Secondly, we use panel structure of data, as we need to test our hypotheses. In spite of analyses alcohol consumption at all we also estimate factors, which determine structure of consumption some beverages, as beer and vodka. In the third chapter, we investigate policy in USSR and Russia in point of alcohol consumption and mortality and formulate recommendation about policy with our findings in empirical part. The main conclusions about structure of alcohol consumption here are: 1) in the several region (Omsk, Stavropol) beer became the main beverage for the last several years; 2) the beer and spirits are complementary products for the most of population. In addition, we determine the main macroeconomic factors, causing the inter-regional differences in alcohol consumption &ndash; the income per capita, the unemployment rate, the coefficient Gini and the urban rate (positive correlation) and also the rate of population under 65 years (negative correlation). By regression analyzing, we prove that population of north regions prefer spirits to beer. Identified correlations could be useful for government policy aimed to reduce alcohol consumption in Russia.&nbsp;</p>

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