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Modelling Alcohol Consumption by Levels Using an Ordered Generalised Extreme Value (OGEV) Model

In: Recreational Drug Consumption

Author

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  • Pratima Ramful Srivastava

    (RMIT University)

Abstract

Most of the harms caused by alcohol are related to excessive drinking. A good understanding of Australians’ drinking patterns is very important from a policy perspective. In Chap.4, an Ordered Probit (OP) model was used to examine individuals’ levels of alcohol consumption. The OP model is characterised by asingle latent variable representing the propensity of choosing higher levels which are mapped orderly to the observed levels of outcomes or choices made by individuals(see McKelvey and Zavoina 1975). This restricts correlates to have the same coefficients and levels of significance across all choices, making it an inflexible model. In addition, the OP model is inconsistent with a consumer preference framework of Random Utility Maximisation (RUM).

Suggested Citation

  • Pratima Ramful Srivastava, 2013. "Modelling Alcohol Consumption by Levels Using an Ordered Generalised Extreme Value (OGEV) Model," Developments in Health Economics and Public Policy, in: Recreational Drug Consumption, edition 127, chapter 0, pages 99-113, Springer.
    • Handle: RePEc:spr:dehchp:978-3-319-02405-9_6
    DOI: 10.1007/978-3-319-02405-9_6
    as

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