The Demand for Beer, Wine, and Spirits: A Systemwide Analysis

Clements, Kenneth W.; Johnson, Lester W.

doi:10.1086/296202

Cited by 111 publications

(47 citation statements)

References 11 publications

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“…The demand for alcoholic beverages has been studied in several papers but most of them have used time series data to estimate a demand system with the aim of calculating income and price elasticities (Clements and Johnson, 1983;Clements and Selvanathan, 1987;Selvanathan, 1988Selvanathan, , 1989Salisu and Balasubramanyam, 1997;Andrikopoulos et al, 1997, among others). In some studies, other exogenous variables have been considered.…”

Section: Introductionmentioning

confidence: 99%

The demand for alcoholic beverages in Spain

Angulo

Gil

Gracía

2001

Agricultural Economics

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The objective of this study is to analyze the main determinants of alcoholic beverages consumption at home. Data comes from the latest Spanish Household National Survey, which provides information on expenditure and quantities of different food products by household. Because households are interviewed only 1 week, a large number of zeros have been recorded. Among the existing censured demand models (the double hurdle (DH) model; the purchase-infrequency model; and the Tobit purchase-infrequency model, among others) and after carrying out model selection tests, the DH model has been finally estimated. All expenditure elasticities are positive, corresponding the highest value to spirits. Own price elasticities are negative and also in this case the spirits exhibit the highest value. Socio-economic variables also play an important role in explaining consumer purchase and consumption decisions.

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Section: Introductionmentioning

confidence: 99%

The demand for alcoholic beverages in Spain

Angulo

Gil

Gracía

2001

Agricultural Economics

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“…The application of the system-wide approach was initiated by Clements and Johnson (1983) who estimated demand equations for beer, wine and spirits. Other studies on this area include Adrian and Ferguson (1987), Clements and E. A.…”

Section: Introductionmentioning

confidence: 99%

The Economic Determinants of Alcohol Consumption*

Clements

Selvanathan

1991

Australian Journal of Agricultural Economics

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In this paper is presented an analysis of the consumption patterns of beer, wine and spirits for Australia using data for the period 1955/561985/86. The validity of the demand theory hypotheses demand homogeneity and Slutsky symmetry has been tested using recently developed distribution-free procedures. The findings were that (i) beer and wine were necessities and spirits a strong luxury; (ii) beer and spirits are specific complements; and (iii) the homogeneity and symmetry hypotheses are acceptable. Preference for wine consumption seems to be independent of preference for beer and spirits. In trod uctionThe consumption of alcoholic beverages is of interest to economists for at least three reasons. First, there is the basic challenge to analyse the extent to which alcohol consumption is amenable to economic analysis. Second, in many countries alcohol is heavily taxed. This raises interesting issues in public finance such as the welfare cost of these taxes, optimal taxation and externalities. Third, in many cases alcohol data are better than most as their basic source is the tax collection records,The application of the system-wide approach was initiated by Clements and Johnson (1983) who estimated demand equations for beer, wine and spirits. Other studies on this area include Adrian and Ferguson (1987), Clements and E. A. Selvanathan (1987), Duffy (1987), Fuss and Waverman (1987), Heien and Pompelli (1989), Holm (1989), Johnsonetal. (1990, Jones (1989), Pearce (1986), Penm (1988, Quek (1988>, E. A. Selvanathan (1988) andWong (1988). In this paper previous research on alcohol is extended in a number of directions.These extensions include the use of new distribution-free procedures (which do not require any asymptotic theory) to test the validity of the hypotheses of demand homogeneity and Slutsky symmetry; the identification of a structure of preferences whereby wine consumption * This paper is a shorter version of Clements and S . Selvanathan (1989). which is available on request. We would like to acknowledge the help of Chen Dongling and comments from Donald MacLaren, David Johnson and an anonymous referee. 209 0

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“…Authors who estimated alcohol demand systems include Clements and Johnson [33] and Clements and Selvanathan [34,35] for Australia, the U.K., and the U.S., Duffy [36] for the U.K., Heien and Pompelli [37] and Nelson and Moran [7] for the U.S., and Andrikopoulos et al [38] for the province of Ontario. Many empirical systems of demand have been estimated using the translog or Rotterdam models.…”

Section: Methodsmentioning

confidence: 99%

Alcohol Consumption and Its Adverse Effects in Poland in Years 1950–2005

Bielińska-Kwapisz

Mielecka-Kubień

2011

Economics Research International

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This study examines changes in alcohol consumption and its adverse effects in Poland from 1950 to 2005. First, we estimate the total alcohol demand function and test Becker and Murphy's (1988) rational addiction model. Next, we explore substitution effects between beer, wine, and spirits and report income and own-and cross-price elasticities of demand for beer, wine, and spirits. Finally, we examine some adverse effects of alcohol consumption: traffic accidents, suicide rates, and vandalism rates. In particular, the effect of lowering the blood alcohol level limit (BAC) on traffic accidents is estimated.

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The Demand for Beer, Wine, and Spirits: A Systemwide Analysis

Cited by 111 publications

References 11 publications

The demand for alcoholic beverages in Spain

The demand for alcoholic beverages in Spain

The Economic Determinants of Alcohol Consumption*

Alcohol Consumption and Its Adverse Effects in Poland in Years 1950–2005

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