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Empirica

, Volume 23, Issue 3, pp 303–316 | Cite as

The effects of regulations on state liquor prices

  • Julian L. Simon
  • David M. Simon
Article
  • 18 Downloads

Abstract

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 words

Regulation liquor fair trade 

JEL codes

L3 L5 

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References

  1. Baltagi, Badi H., and Rajeev K. Goel (1990) ‘Quasi-Experimental Price Elasticity of Liquor Demand in the United States: 1960–83’,American Journal of Agricultural Economics, May, 451–464.Google Scholar
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  3. Luksetich, William A. (1975) ‘A Study of Regulation: The Minnesota Liquor Case’,Southern Economic Journal, January, 457–465.Google Scholar
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  9. Simon, Julian L., and David M. Simon (1995) ‘Public Ownership Versus Private Enterprise: State Liquor Distribution Systems Revisited’, unpublished.Google Scholar
  10. Smith, J.K. (1982) ‘An Analysis of State Regulations Governing Liquor Store Licensees’,Journal of Law & Economics, 301–319.Google Scholar

Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Julian L. Simon
    • 1
  • David M. Simon
    • 2
  1. 1.University of MarylandCollege Park
  2. 2.Wildman, Harrold, Allen & DixonChicago

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