Advanced Search
MyIDEAS: Login to save this paper or follow this series

Infrequency of Purchase, Individual Heterogeneity an and Rational Addiction in Single Households’ Estimates of Alcohol Consumption

Contents:

Author Info

  • Pierpaolo Pierani

    ()

  • Silvia Tiezzi

    ()

Abstract

A panel of Italian single households is used to test for rational addiction in alcohol consumption. These monthly consumption data raise problems of measurement errors and unobservable heterogeneity. To deal with the zeros in the dependent variable we adopt a specification based on infrequency of purchase. GMM estimators are used to deal with errors in variables and unobserved heterogeneity. There is evidence that alcohol consumers are actually forward-looking. Past consumption is also significant in explaining current consumption thus detecting the addictive nature of alcohol. Discount rates, the strength of addiction, short and long run price and income elasticities are significant and in line with the theoretical predictions. These results and the inclusion of a number of demographic and geographic characters deliver valuable information for public policy purposes and suggest significant differences driven by individual heterogeneity.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ-pol.unisi.it/quaderni/604.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 604.

as in new window
Length:
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:usi:wpaper:604

Contact details of provider:
Postal: Piazza S.Francesco,7 - 53100 Siena
Phone: (39)(0577)232620
Fax: (39)(0577)232661
Email:
Web page: http://www.deps.unisi.it/
More information through EDIRC

Related research

Keywords: rational addiction; infrequency of purchase; GMM;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:usi:wpaper:604. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fabrizio Becatti).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.