The effects of regulations on state liquor prices

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.This paper is an outgrowth of a senior thesis by the second author. We appreciate useful information from Steve Barsby and James M. Ferguson, and helpful comments from Stanley Ornstein and Dennis W. Carlton. Gary L. Marshall of the Distilled Spirits Council of the US provided the information that After 1984, DISCUS no longer published the retailer's prices for distilled spirits sold at retail establishments (correspondence of October 25, 1993).