This dissertation consists of three essays. Two are empirical and one is theoretical. The empirical papers consider the relationship between advertising and beer consumption by young adults. We use the fact that numerous differences existed in the MLDA across states to analyze the effect of the minimum drinking age on the beer consumption. The second empirical paper analyzes the hypothesis that alcohol and cigarettes are complements and studies the effect of advertising, cigarettes consumption and government regulations on beer consumption by youth. We use time series market-level data to...