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The authors used a daily process design to assess alcohol's stress-response dampening (SRD) effects. Moderate to heavy social drinkers (N = 100) reported on palmtop computers their alcohol consumption and social context in vivo for 30 days. Participants also reported on their mood states in the late morning and early evening and completed a paper-and-pencil daily diary in which they recorded their negative events. The association between negative events and mood was weaker on days when individuals consumed alcohol prior to the final mood assessment. However, the moderating effect of alcohol on the negative event-mood association was limited to drinking in social situations. Alcohol's SRD effects varied as a function of several between-person risk factors.