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Determinants of Household Expenditures on Alcohol

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Author Info
Yen, Steven T.
Jensen, Helen H.

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Abstract

This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption. We also examine the effects of explanatory variables by calculating and decomposing the elasticities. Findings support the use of a more generalized error distribution. Income, region, education, and household demographics are among the significant determinants of alcohol expenditures.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 927.

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Date of creation: 31 Dec 1995
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Publication status: Published in The Journal of Consumer Affairs, Summer 1996, Vol. 30, No. 1, pp. 48-67.
Handle: RePEc:isu:genres:927

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Horowitz, Joel L & Neumann, George R, 1989. "Specification Testing in Censored Regression Models: Parametric and Semiparametric Methods," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages S61-86, Supplemen. [Downloadable!] (restricted)
  2. MacKinnon, James G & Magee, Lonnie, 1990. "Transforming the Dependent Variable in Regression Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 315-39, May. [Downloadable!] (restricted)
  3. Arabmazar, Abbas & Schmidt, Peter, 1981. "Further evidence on the robustness of the Tobit estimator to heteroskedasticity," Journal of Econometrics, Elsevier, vol. 17(2), pages 253-258, November. [Downloadable!] (restricted)
  4. Deaton, Angus & Irish, Margaret, 1984. "Statistical models for zero expenditures in household budgets," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 59-80. [Downloadable!] (restricted)
  5. Selvanathan, E A, 1991. "Cross-country Alcohol Consumption Comparison: An Application of the Rotterdam Demand System," Applied Economics, Taylor and Francis Journals, vol. 23(10), pages 1613-22, October.
  6. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September. [Downloadable!] (restricted)
  7. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May. [Downloadable!] (restricted)
  8. Jones, Andrew & Posnett, John, 1991. "Charitable Donations by UK Households: Evidence from the Family Expenditure Survey," Applied Economics, Taylor and Francis Journals, vol. 23(2), pages 343-51, February.
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  1. Fuller, Frank H. & Beghin, John C. & Rozelle, S., 2007. "Urban Demand for Dairy Products in China: Evidence from Survey Data," Staff General Research Papers 12730, Iowa State University, Department of Economics. [Downloadable!]
  2. Fabiosa, Jacinto F., 2006. "Westernization of the Asian Diet: The Case of Rising Wheat Consumption in Indonesia," Staff General Research Papers 12587, Iowa State University, Department of Economics. [Downloadable!]
  3. Fuller, Frank H. & Beghin, John C. & Rozelle, Scott, 2004. "Urban Demand for Dairy Products in China: Evidence from New Survey Data," Staff General Research Papers 12221, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  4. Jacinto F. Fabiosa, 2005. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," Center for Agricultural and Rural Development (CARD) Publications 05-wp400, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
  5. Fabiosa, Jacinto F., 2005. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," Staff General Research Papers 12393, Iowa State University, Department of Economics. [Downloadable!]
  6. Jacinto F. Fabiosa, 2006. "Westernization of the Asian Diet: The Case of Rising Wheat Consumption in Indonesia," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp422, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
  7. Federico Perali & David Aristei & Luca Pieroni, 2005. "Cohort analysis of alcohol consumption: a double hurdle approach," CHILD Working Papers wp09_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
  8. Jacinto F. Fabiosa, 2005. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," Food and Agricultural Policy Research Institute (FAPRI) Publications 05-wp400, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
  9. Jacinto F. Fabiosa, 2006. "Westernization of the Asian Diet: The Case of Rising Wheat Consumption in Indonesia," Center for Agricultural and Rural Development (CARD) Publications 06-wp422, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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