The effects of regulations on state liquor prices
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Several estimation methods agree that state regulations such as resale price maintenance and retail price posting affected the prices of liquor brands up to the mid-1970s in the US states in which the distribution system is privately owned; before-versus-after analysis using the quasiexperimental method provides the strongest evidence. The effects of particular regulations are not so clearcut, however.
In the 1970s, the regulations supporting these practices began to be removed. The regulations that continued in effect seem to have lost their potency about that time. The effects of regulation no longer are seen.
Key wordsRegulation liquor fair trade
JEL codesL3 L5
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