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Moreover, since there is some correlation between the state dummy variables and the MDAL, the OLS estimates are biased to some extent, although the Hausman test does not reject that the bias is significant.
This study uses data from the National Longitudinal Survey of Youth to investigate the effect of minimum drinking age laws (MDALs) on youth alcohol consumption.
Alcohol consumption is highly regulated, and one of the most stringent forms of regulation is minimum drinking age laws (MDALs), which prohibit youths from purchasing alcoholic beverages.
In contrast to the inconsistency that characterizes estimates of the effect of MDALs on alcohol consumption, studies of the impact of MDALs on driving fatalities are nearly unanimous in finding that higher drinking ages have reduced youth driving fa talities.
The purpose of this study is to reexamine the effect of MDALs on youth alcohol consumption.
I reexamine the effects of MDALs on alcohol consumption using two quasi-experimental statistical methodologies that control for unmeasured factors more completely than methodologies used in previous studies.
Several studies of the effect of MDALs on youth alcohol consumption have used individual-level data for a single year.
nonexperimental) specific trend in alcohol consumption of 21-year-olds, and thus 21-year-olds are acting as a control group for the group of 20-year-olds who are affected by the MDALs. There are two conditions that need to be met for the control group to be valid.
Thus, it is important to find that MDALs affect 20-year-olds as much, and maybe even more, than they do youths of younger ages.
In this study, I have reexamined the effect of minimum drinking age laws (MDALs) on youth alcohol consumption.
Part of the motivation for this study was methodological, as a common flaw of many past studies of the effect of MDALs was their failure to control adequately for time-invariant and time-varying state effects.
On the one hand, the estimates of the effect of MDALS on youth alcohol consumption presented in this article lack a degree of robustness necessary to conclude that MDALs effectively reduce alcohol consumption.
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