Availability and consumption of alcoholic beverages: evidence from Finland

The study examines the consumption of alcoholic beverages in Finland over the period 1960 to 2004. Consumption is explained by its own real price, relative prices, expenditure and variables measuring the availability of alcohol. The empirical analysis utilizes information on linkages across different beverages and uses co-integration techniques. The study finds that changes in the availability of alcohol, typically related to institutional changes, have played an important role in determining consumption, especially of beer.