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Alcohol Consumption in Australia: An Application of the Ordered Generalised Extreme Value Model

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  • Xueyan Zhao
  • Mark Harris
  • Preety Ramful

Abstract

The adverse effects of excessive alcohol consumption are well-known. Of great concern to policy makers is to understand the potentially different drivers for consumers of different levels of alcohol consumption. Using unit record data from the Australian Drug Strategy Household Surveys, this paper estimates an Ordered Generalised Extreme Value model to identify the factors that influence differing levels of alcohol consumption. Unlike previous studies using inflexible approaches such as Ordered Probits/Logits or Multinomial Logits, the OGEV model is both flexible and consistent with random utility maximization. The results suggest that important drivers are: age; income; education; gender; and own and cross-pric

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File URL: http://repec.org/esAUSM04/up.15009.1077947115.pdf
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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 Australasian Meetings with number 301.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:ausm04:301

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Keywords: Drug consumption; discrete ordered data; Ordered Generalised Extreme Value model; random utility maximisation; rational addiction.;

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  10. Frank J. Chaloupka & Henry Wechsler, 1996. "Binge Drinking In College: The Impact Of Price, Availability, And Alcohol Control Policies," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 112-124, October.
  11. Small, Kenneth A, 1987. "A Discrete Choice Model for Ordered Alternatives," Econometrica, Econometric Society, vol. 55(2), pages 409-24, March.
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Cited by:
  1. Ramful, Preety & Zhao, Xueyan, 2006. "Heterogeneity in Alcohol Consumption: The Case of Beer, Wine and Spirits in Australia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25359, International Association of Agricultural Economists.

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