Abstract
THIS PAPER STUDIES THE EFFECTS OF CHANGES IN THE LEVEL OF INDIRECT TAXATION OF ALCOHOLIC BEVERAGES ON ALCOHOL-RELATED PROBLEMS. USING TIME SERIES DATA FOR IRELAND THE FOLLOWING TOPICS ARE EXPLORED: (1) THE EFFECT OF CHANGES IN TAXATION ON THE RETAIL PRICE OF ALCOHOL; (2) THE EFFECT OF CHANGES IN THE RETAIL PRICE ON THE CONSUMPTION OF ALCOHOL; AND (3) THE ASSOCIATION BETWEEN CHANGES IN ALCOHOL CONSUMPTION AND THE INCIDENCE OF CERTAIN ALCOHOL-RELATED PROBLEMS, SUCH AS DEATHS FROM LIVER CIRRHOSIS AND FATAL ROAD ACCIDENTS. THE EVIDENCE IS THAT A RELATIVELY SMALL NUMBER OF ALCOHOL-RELATED DEATHS WOULD BE AVERTED BY HIGHER ALCOHOL TAXES. THE EFFECT OF HEAVIER TAXATION ON THE DISTRIBUTION OF PURCHASING POWER IS DISCUSSED.(Author/publisher).