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Optimal Alcohol Policy

Student: Lukibanov Ilya

Supervisor: Evgeny Yakovlev

Faculty: Faculty of Economic Sciences

Educational Programme: Joint HSE-NES Undergraduate Program in Economics (Bachelor)

Final Grade: 9

Year of Graduation: 2017

In my thesis, I am trying to solve the problem of excessive male mortality rate in Russia. Medical studies show that up to 35% of working male deaths in Russia are related to vodka consumption. Therefore, I suggest public policies on the alcohol market to overcome this issue. Particularly, I use structural approach to model consumer choices and substitution effects. Moreover, this approach gives me the opportunity to estimate consequences of a policy on the consumer surplus and the mortality. My models keep consumer surplus constant; therefore, they entail less political risks than policies in the previous works. I suggest shifting demand from spirits to beer through an increase in the excise tax on vodka and the decrease in the excise tax on beer. Finally, I propose a policy that will save 110,000 male lives per year.

Full text (added May 14, 2017)

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