Alcohol Consumption During Prohibition
NBER Working Paper No. 3675 (Also Reprint No. r1563)
We estimate the consumption of alcohol during Prohibition using mortality, mental health and crime statistics. We find that alcohol consumption fell sharply at the beginning of Prohibition, to approximately 30 percent of its pre-Prohibition level. During the next several years, however, alcohol consumption increased sharply, to about 60-70 percent of its pre-prohibition level. The level of consumption was virtually the same immediately after Prohibition as during the latter part of Prohibition, although consumption increased to approximately its pre-Prohibition level during the subsequent decade.
Published: The American Economic Review, Vol. 81, No. 2, pp. 242-247, (May 1991).