Seyfettin Gürsel, Gokçe Uysal and Duygu Güner
This research brief investigates the effects of highly debated alcoholic beverage regulation on product prices, tax revenues, consumption and production in alcoholic beverage market. Following numerous increases in taxes, alcoholic beverage price index increased by 129 percent from 2003 to September 2010, the CPI rose only by 79 percent. The increase in tax revenues during the same period was more than 50 percent in real terms. The number of households declaring that they consume alcoholic beverages and the average alcoholic beverage consumption of households also decreased. These numbers imply a one third decrease in aggregate consumption. The decrease in production is consistent with the decline in consumption.
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