WHO PAYS THE BAR TAB? BEER CONSUMPTION AND ECONOMIC GROWTH IN THE UNITED STATES

Few studies explore the linkages between health behaviors and macroeconomic outcomes. This study uses 1971-2007 state-level data from the United States to estimate the impact of beer consumption on economic growth. We document that beer consumption has negative effects on economic growth measures once the endogeneity of beer consumption is addressed. Our estimates are robust to a range of specification checks. These findings run parallel to a large body of literature documenting substantial social and economic costs stemming from alcohol use.