Hurdle Models of Alcohol and Tobacco Expenditure in South African Households
AbstractEstimates of participation or expenditure elasticities depend upon the assumptions made regarding the observation of zero expenditure at the household level. This research examines two single-hurdle models across two commodities for which nearly two-thirds of the observations are zero. The research shows that one hurdle model consistently outperforms the other, and does so for intuitively appealing reasons.
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Bibliographic InfoPaper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200703.
Length: 25 pages
Date of creation: Feb 2007
Date of revision:
Other versions of this item:
- Marc Ground & Steven f Koch, 2008. "Hurdle Models Of Alcohol And Tobacco Expenditure In South African Households," South African Journal of Economics, Economic Society of South Africa, vol. 76(1), pages 132-143, 03.
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
This paper has been announced in the following NEP Reports:
- NEP-AFR-2007-11-17 (Africa)
- NEP-ALL-2007-11-17 (All new papers)
- NEP-DEV-2007-11-17 (Development)
- NEP-HEA-2007-11-17 (Health Economics)
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