Beer Taxes, the Legal Drinking Age, and Youth Motor Vehicle Fatalities

Abstract

The responsiveness of motor vehicle death rates of youths aged fifteen through twenty-four to variations in the cost of beers as reflected by differences in State excise tax rates on beer is investigated. Evidence for this age group is provided on the extent to which declining real beer excise taxes have contributed to increases in fatal motor vehicle crashes and on the extent to which increases in real beer taxes can serve as a potent instrument in the antidrinking campaign. The effect of an increase in the legal drinking age on youth motor vehicle deaths is also examined.