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Chunk #41 — Effects of Price on Consequences of Alcohol Abuse — Health Effects

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The effects of price on alcohol consumption and alcohol-related problems.
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Chesson and colleagues (2000) focused on a different outcome— sexually transmitted disease rates—in an analysis of all States for the years 1981 to 1995. After controlling for State and year effects, the investigators concluded that a $1 increase in the per-gallon liquor tax can reduce gonorrhea rates by 2.1 percent; furthermore, a beer tax increase of 20 cents per six-pack can reduce gonorrhea rates by 8.9 percent. Similar, or even somewhat larger, effects of liquor and beer taxes were found for syphilis rates.