Does a Cocktail to-go Come with a Free Lunch?
This paper studies the consequences of to-go alcohol policies in the United States. Allowing consumers to take beverages with them from restaurants eases access to alcohol, resulting in greater excise tax revenues. The support of restaurants during the Covid-19 crisis might have had substantial spillover benefits as measured by general sales tax revenues. However, the benefits come at a social cost; to-go alcohol policies appear to increase incidences of drinking and driving. The number of fatalities from collisions involving a drinking driver increases with the implementation of to-go alcohol policies, suggesting to-go alcohol does not come with a free lunch.
alcohol regulation, tax revenues, traffic fatalities
SMU Cox: Finance (Topic)