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Estimation of individual demand for alcohol

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  • 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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Bibliographic Info

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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Keywords: Russia; alcohol; demand.;

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Cited by:
  1. Vladimir Popov, 2011. "Mortality Crisis in Russia Revisited: Evidence from Cross-regional Comparison," Working Papers w0157, Center for Economic and Financial Research (CEFIR).
  2. Evgeny Yakovlev, 2012. "Peers and Alcohol: Evidence from Russia," Working Papers w0182, Center for Economic and Financial Research (CEFIR).
  3. Yana Roshchina, 2013. "To drink or not to drink: the microeconomic analysis of alcohol consumption in Russia in 2006-2010," HSE Working papers WP BRP 20/SOC/2013, National Research University Higher School of Economics.

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