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Heterogeneity in Alcohol Consumption: The Case of Beer, Wine and Spirits in Australia

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Author Info
Ramful, Preety
Zhao, Xueyan

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Abstract

This paper examines Australians’ participation in beer, wine and spirits consumption using a trivariate probit model and unit-record data from the National Drug Strategy Household Surveys. It estimates the effects of social, economic and demographic factors on an individual’s decisions of alcohol participation. The trivariate probit formulation allows for the potential correlation across the demand for the three products through unobserved personal characteristics. All three beverages are shown to have negative own-price elasticities and to be substitutes in participation. An alarming proportion of young Australians are found to be drinking spirits regularly due to the increasing popularity of pre-mixed sweet drinks.

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Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25359.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25359

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Web page: http://www.iaae-agecon.org/
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Keywords: Food Consumption/Nutrition/Food Safety;

References listed on IDEAS
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  1. Cameron, Lisa & Williams, Jenny, 2001. "Cannabis, Alcohol and Cigarettes: Substitutes or Complements?," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 19-34, March. [Downloadable!] (restricted)
  2. Clements, Kenneth W & Yang, Wana & Zheng, Simon W, 1997. "Is Utility Additive? The Case of Alcohol," Applied Economics, Taylor and Francis Journals, vol. 29(9), pages 1163-67, September. [Downloadable!] (restricted)
  3. Adit Laixuthai & Frank J. Chaloupka, 1993. "Youth Alcohol Use and Public Policy," NBER Working Papers 4278, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Xueyan Zhao & Mark Harris & Preety Ramful, 2004. "Alcohol Consumption in Australia: An Application of the Ordered Generalised Extreme Value Model," Econometric Society 2004 Australasian Meetings 301, Econometric Society. [Downloadable!]
  5. Kenneth W. Clements & Wana Yang & Simon W. Zheng, 1997. "Is utility additive? The case of alcohol," Applied Economics, Taylor and Francis Journals, vol. 29(9), pages 1163-1167, September. [Downloadable!] (restricted)
  6. Kenkel, Donald S, 1996. "New Estimates of the Optimal Tax on Alcohol," Economic Inquiry, Oxford University Press, vol. 34(2), pages 296-319, April.
  7. Michael Grossman & Frank J. Chaloupka & Ismail Sirtalan, 1995. "An Empirical Analysis of Alcohol Addiction: Results from the Monitoring the Future Panels," NBER Working Papers 5200, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Henry Saffer & Frank Chaloupka, 1994. "Alcohol Tax Equalization and Social Costs," Eastern Economic Journal, Eastern Economic Association, vol. 20(1), pages 33-43, Winter. [Downloadable!]
  9. Ornstein, Stanley I & Hanssens, Dominique M, 1985. " Alcohol Control Laws and the Consumption of Distilled Spirits and Beer," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 12(2), pages 200-213, September.
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