Chaudhuri, K., Jha, N. Nilayamgode, M. and Suryanarayana, R.

Alcohol ban and crime: The ABCs of the Bihar prohibition - Economic Development and Cultural Change - 72(4), Jul, 2024: p.1795-1827

This study investigates the impact of the 2016 alcohol prohibition in Bihar, India, on crime rates using a difference-in-differences methodology. It finds a 0.22 standard deviation reduction in reported violent crimes, with no significant change in nonviolent crimes. The effects are more pronounced in interior districts and areas with higher initial alcohol consumption or fewer religious constraints. The findings suggest that the decline in crime is primarily due to reduced alcohol availability and consumption, rather than broader institutional reforms. Authors study the relationship between alcohol consumption and crime after an alcohol prohibition in Bihar, India, in 2016. Using a difference-in-differences approach, we explore the differential effects of alcohol on different crime types. We find that the prohibition led to a 0.22 standard deviation point reduction in reported violent crimes without significantly affecting nonviolent crimes. Heterogeneity tests reveal stronger effects in interior districts and in districts with higher baseline alcohol consumption or fewer religious restrictions on alcohol consumption. Thus, we conclude that the ban affected crime by reducing alcohol availability and consumption rather than through institutional changes.- Reproduced

https://www.journals.uchicago.edu/toc/edcc/2024/72/4



Alcohol Prohibition, Bihar, Violent Crime Reduction, Difference-in-Differences, Crime Types, Alcohol Consumption, Interior Districts, Religious Restrictions, Policy Impact, Public Safety, Institutional Change, Baseline Consumption