The Power of the Anticorruption Campaign: Evidence from Cigarette and Alcohol Consumption in China

Little is known about the effects of anticorruption campaigns on individuals’ consumption behavior. Using the anticorruption campaign launched in China as a quasi-natural experiment, this study investigates the causal effect of the anticorruption campaign (punishment) on cigarette and alcohol consumption between government officials and other individuals. We provide the first direct evidence that demonstrates the effectiveness of the campaign with its significant and negative effect on the potential consumption of government officials. Notably, these effects are less pronounced among individuals nearing retirement, presumably because of the diminished prospects for promotions relative to other individuals.