To what extent, if any, does increasing excise taxes have on alcohol consumption in OECD countries?

Title:

An analysis of the effects of excise taxes on alcohol consumption in OECD (The Organization for Economic Co-operation and Development) countries.

Overview of thesis:

This thesis focuses on the impact that excise taxes have on alcohol consumption, i.e. does increasing the taxes on alcohol goods (excise tax) result in people decreasing their consumption of alcohol, because the price is higher?

This is based on the law of demand, which states that’s as the price of a good goes up, the quantity demanded of a good goes down and people consume less of the good as a result. In this circumstance, we are examining when the price of alcohol goods go up, does consumption of alcohol goods go down?

NB the 2 alcohol categories of goods that will be examined in this thesis are beer and spirits (vodka, gin, etc.). Wine will not be examined as it is generally not associated with excessive levels of consumption. Please disregard wine in any of the journal articles, thank you.

Harvard referencing style. Spacing 1.5. page numbers.

Please use Graphs and tables from the journal articles// papers that are attached if possible

 

The Structure of the dissertation is a follows:

Abstract (see below) 250 words

 

Introduction (written at the end) due date 11th July 1000 words

Background and motivation (identify gaps in the data) 1500 words

Literature review 4000 words

Data and methodology (to be completed by me)

Results (to be completed by me)

Conclusion 250 words

Bibliography

Abstract: This need to be re written in more academic language and improved (additional words)

Excessive alcohol consumption has been a significant contributor to diseases across countries in recent years. Consequently, it has resulted in striking healthcare costs and productivity losses. Economic literature has identified excise taxes as an effective fiscal instrument in addressing the excessive consumption of alcoholic beverages, which in turn has mitigated the associated health costs and implications. The primary objective of this dissertation is to empirically investigate the effect that excise taxes have on alcohol consumption in OECD nations. Utilising panel data analysis, the relative levels of excise taxes and their subsequent effects on alcohol consumption in OECD nations will be examined.

 

The Research Question of the thesis is:

To what extent, if any, does increasing excise taxes have on alcohol consumption in OECD

countries?

 

The Introduction should be written at the end when all the data is pulled together.

Strong introduction to grab the reader

 

 

Background and motivation

Function of background and motivation: The background and motivation section should establish the relevance of the study. In other words, why the thesis should be carried out. The background of the study relates the thesis with the prevailing literature and the research gap. It also depicts your motivation for the study

It should indicate your hypothesis and the assumptions with all the background logic.

For this thesis: the assumption is that increasing excise tax rates of alcoholic beverages, results in a decrease in consumption of alcoholic beverages.

Motivation: The importance of this thesis stems from the fact that alcohol is a major contributor to various forms of cancers in nations and results in a number of economic costs to society and has been shown to restrict activity in labour markets (unemployment, illness etc.).

Background: excise tax is an economic instrument that has shown to be effective in addressing the problem of alcohol consumption by reducing consumption. This decrease in consumption is characterised by fewer incidence of alcohol related cancers in countries that have increased excise tax rates on alcohol.

Please use roughly 5 academic journal articles//papers for the background and motivation section

NB Use articles from Group 1 and Group 2 ( See pages 5 and 6 of this word document)

Literature Review:

Function of a literature review: The literature review is an account of what has been published by researchers//scholars

It shows how the prevailing idea fits the thesis and how the thesis agrees or differs from other scholar’s research

It finds topics for future research

It should justify the choice of the chosen research question

Provide background information to understand the topic

Show how this dissertation is consistent with existing economic knowledge and show this dissertation is different

It should broaden the reader’s knowledge on the topic

For this thesis: The efficacy of excise taxes as an economic instrument should be examined using the economic journals attached

The excise tax rates ability to reduce alcohol consumption and subsequent cancer rates should be examined using the health/economics papers attached

Please use at least 10 academic journal articles//papers for the literature review. (10 journal articles for the literature review would be great)

NB Use articles from Group 1 and Group 2 ( See pages 5 and 6 of this word document)

 

 

Data And Methodology + Results = 3,500 – 4,000 words

Data and Methodology:

The data and methodology section focuses on panel data analysis using the STATA software. The empirical equation roughly is:

ACt = ETR1 + DI2

Where:

ACt = Alcohol consumption

ACt is the dependent variable and is an excel file (.csv). Alcohol consumption is defined as the annual sale of pure alcohol in litres per person aged 15 years and older

ETR1 = the excise tax rate per country.

ETR1 is an independent variable and is an excel file (.csv). The excise tax rate is defined as the tax rate per hectolitre of alcohol (H/L) levied on beer and spirit(s) based alcoholic goods. I need to clean this data set.

DI2= the disposable income. I am currently trying to find this data.

Note: I am in the process of finding all the necessary data and cleaning the data sets. I will provide you with all of the necessary data sets etc. as soon as possible

 

Results:

Interpretation of the results of the panel data analysis of the above variables.

Data And Methodology + Results = 3,500 – 4,000 words

 

 

Conclusion 250 words approx.

 

Overview of the attached journal articles:

The attached journal articles are made up of economics, health economics and other health related journal articles. Please let me now if you cannot access the attached articles and I will re-upload//re-send them, thanks.

I have put the attached articles in 2 groups, which may be beneficial for you. Note that group 2 is greater than group 1, due to more literature being published in this group than group 1

Group 1): Economics orientated articles: These articles are more theoretical and focus on the economic theory surrounding excise tax rate(s) : (Price elasticity, cross elasticity, income elasticity)

Group 1 list:

Theory and practice of excise taxation,, Note: I could not attach a copy of this book. However, the DOI//URL can be found using the following link. The section of the book that focuses on the economic theory surrounding excise taxation on alcohol is beneficial, if you can gain access to the book. https://oxford.universitypressscholarship.com/view/10.1093/0199278598.001.0001/acprof-9780199278596

Alcohol quantity and quality price elasticity’s: quintile regression estimates

Alcohol use and the wage returns to education and work experience

CHAPTER 7 Excise Taxation and Product Quality Substitution

Tax design in the alcohol market

ESTIMATING THE PRICE ELASTICITY OF DEMAND FOR DIFFERENT LEVELS OF ALCOHOL CONSUMPTION AMONG YOUNG ADULTS

Estimation of own and cross price elasticity’s of alcohol demand in the UK—a pseudo-panel approach using the Living Costs and Food Survey 2001–2009

Price and Income Elasticity’s of Demand for Alcoholic Beverages

 

Group 2): Health economics and other health journals:

These articles focus on studies where the health impacts of alcohol consumption (various forms of cancers)

It also includes studies on the economic impacts of alcohol consumption (economics costs to society: direct costs, indirect costs)

It includes studies where nations increased excise tax rates and saw a decrease in the sales of alcohol, consumption of alcohol and in the number of cancer rates, all of which the efficacy of excise taxes

Group 2 list:

The pass‑through of alcohol excise taxes to prices in OECD countries

What are the Economic Costs to Society Attributable to Alcohol Use? A Systematic Review and Modelling Study

Alcohol accounts for a high proportion of premature mortality in central and Eastern Europe

Alcohol consumption and labour market participation: a prospective cohort study of transitions between work, unemployment, sickness absence, and social benefits

Alcohol taxation, alcohol consumption and cancers in Lithuania: A case study

Alcohol-related male mortality in the context of changing alcohol control policy in Lithuania 2000–2017

Fewer Cancer Cases in 4 Countries of the WHO European Region in 2018 through Increased Alcohol Excise Taxation: A Modelling Study

Associations between socio-economic factors and alcohol consumption: A population survey of adults in England

Can a policy-induced reduction in alcohol consumption improve health outcomes and stimulate the UK economy? A potential ‘double dividend

Employment impacts of alcohol taxes

Estimated Effects of Different Alcohol Taxation and Price Policies on Health Inequalities: A Mathematical Modelling Study

GENDER DIFFERENCES IN ALCOHOL DEMAND: A SYSTEMATIC REVIEW OF THE ROLE OF PRICES AND TAXES

Social cost-benefit analysis of regulatory policies to reduce alcohol use in The Netherlands

 

Some points:

The 7,000 word count stated in the order comes from:

Abstract: 250 words

Introduction: 1,000 words

Background and motivation: 1,500 words

Literature review: 4,000 words

Conclusion: 250 words

(( I need to find the all of the relevant data for the data and methodology and results sections and I will submit this as an order at a separate date, if that’s okay. In which case, these sections would amount to 3,500 to 4,000 words)).

NOTE: 30days is stated as the urgency but I can accept things up to the 11th of July for this order, if that’s okay.

Also if possible, I am wondering when you complete a section if you could send it to me, for example sending the literature review straight after you complete it, thanks.