External Effects of Alcohol Consumption

Alcohol is usually known as one of the most addictive goods with lots of negative effects, internal and external, e.g. unintentional injuries, aggressive outbreak, car accidents, risk-taking behavior and etc. That leads to numerous negative externalities that affect not only the drinkers, but the whole society as well, It is important to understand how alcohol consumption can effect social and economics determinants of regions estate and what negative externalities it creates. This research represents the analysis of the negative external effects of alcohol consumption in Russian regions between 2010 and 2018. The investigated effects are the following: the crime rate, mortality from external causes and the rate of fatal outcomes in car accidents. Methodology of this paper is based on three panel regression models with fixed effects for the regions, one for each investigated relationship. The main anticipated result is that high level of alcohol consumption leads to worse socioeconomic situation in the region and increasing crime and mortality rate. Some recommendations for state anti-alcohol policy will be also provided.