Title

Determinants of Household Expenditures on Alcohol

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

1996

Journal or Book Title

The Journal of Consumer Affairs

Volume

30

Issue

1

First Page or Article ID Number

48

Last Page

67

DOI

10.1111/j.1745-6606.1996.tb00725.x

Abstract

This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption. We also examine the effects of explanatory variables by calculating and decomposing the elasticities. Findings support the use of a more generalized error distribution. Income, region, education, and household demographics are among the significant determinants of alcohol expenditures.

Comments

This is a working paper of an article from The Journal of Consumer Affairs 30 (1996): 48, doi: 10.1111/j.1745-6606.1996.tb00725.x.