ABSTRACT
Beverage alcohol has a well-established place in the economies of the developed countries of the world. The production and distribution of beer, wine, and spirits are significant activities, generating considerable employment and providing an important source of tax revenue for many governments. Consumer spending on these items is an important component of total expenditure. At the same time, it is generally acknowledged in these countries that problem drinking imposes serious costs on society. These are due to the excess morbidity, premature mortality, crime, policing, accidents, and other burdens that can be linked to alcohol abuse. The quantification of these costs has been a concern of researchers at least since the first decade of the 20th century, but large unresolved issues concerning their classification and measurement persist. The treatment of the entries in the other side of the balance sheet—the benefits derived from drinking—also poses considerable conceptual problems.
