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KMID : 1235020090030020014
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Health Service Management Review
2009 Volume.3 No. 2 p.14 ~ p.23
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Estimates of social and economic costs of Alcohol Drinking in Korea
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Lee Rak-Hyun
Kim Hyung-Chun
Shin Sung-Sik
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Abstract
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We wanted to estimate the annual socioeconomic costs of alcohol drinking in korea In this study, focusing on the available data, a category was classified on benefit through appropriate alcohol drinking and cost on the expenses of lost productivity due to premature mortality, lower productivity, damage in property, various administration cost, alcohol consumption and medical care cost due to alcohol drinking. And the social economic cost of alcohol drinking was presented according to the alcohol aetiological fraction of Single (1999), applied in the estimation process. In addition, as there is a possibility of the scale of lose to be evaluated to be too little or exaggerated according to the important index applied in the estimation process, an analysis was conducted on the sensitivity on-the-job reduction in productivity rate, discount rate, indirect medical cost rate, workmen`s accident insurance cost rate related to alcohol drinking. in the estimation process with the application of alcohol aetiological fraction of Single (1999), the total social economic cost due to alcohol drinking was 24 trillion 271.9 billion won- 3.33% of GDP and the reduction and loss of production due to disease and excessive alcohol drinking was 12 trillion 484.9 billion won, the greatest loss with 51.4% of the total cost. In addition, the lost productivity by premature death due to accidents and diseases was 5 trillion 830.1 billion won (24%); expenses for alcohol consumption was 4 trillion 257.9 billion won (17.5%); medical cost to treat diseases was 1 trillion 172.8 billion won (4.8%); the car insurance and police administration cost was 282.0 billion won (1.2%); and damage in property due to traffic accidents and fire was 244.2 billion won (1%), in order(2003). In the analysis of sensitivity, there was the greatest amount of fructuation from the minimum of 21 trillion 939.9 billion won to the maximum of 26 trillion 663.9 billion won according to the discount rate of 3%~7% of lost productivity due to premature death. Our study confirms that compared with the cases of Scotland (1.5% of GDP) and the other advanced countries (1.1-2.0% of GDP), alcohol drinking incurs substantial socioeconomic costs to the Korean society. Therefore, this study provides strong support for government interventions to control alcohol drinking in Korea.
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KEYWORD
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Alcohol drinking, Costs, Korea
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