Analysis using a quasi-experimental design reveals policy changes reduce liquor store traffic, suggesting significant shifts in consumer behavior.
We study how expanding alcohol availability at grocery and convenience stores affects consumer traffic in liquor stores by leveraging recent changes in state‐level alcohol distribution laws in a difference‐in‐difference quasi‐experimental design. Results indicate that more extensive liberalization results in higher losses of traffic at liquor stores and that the impact is dynamic over time. Additionally, the overall impact at rural stores is larger compared to urban stores. We discuss the economic, geographic, and behavioral factors behind the heterogeneous impacts of the policy and develop a general theory of the effects of liberalization on the liquor store sector.
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Palardy et al. (2025) studied this question.
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