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Estimation of individual demand for alcohol

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Author Info
Andrienko Yury ()
Nemtsov Aleksandr ()
Abstract

Using individual data from RLMS, the longitudinal survey of the representative sample of the Russian population, we study static and dynamic models of demand for alcohol. We show the demand curve has traditional negative slope for any type of alcoholic drink: vodka, beer, and wine. We find substitution of moonshine for vodka with higher price on vodka and between vodka&beer with higher price on one of them. As a result of substitution vodka price has no impact on total ethanol consumption, while higher price on beer and wine reduce demand for ethanol. We also demonstrate that income has important effect on demand for alcoholic drinks. Risk to be drinker is rising with individual income. Higher income results in lower consumption of moonshine and in higher consumption of vodka, beer, and wine.

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Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 05-10e.

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Date of creation: 08 Sep 2005
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Handle: RePEc:eer:wpalle:05-10e

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Related research
Keywords: Russia; alcohol; demand.;

Find related papers by JEL classification:
I1 - Health, Education, and Welfare - - Health
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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References listed on IDEAS
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    Other versions:
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