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Economic and demographic factors in Australian alcohol demand

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  • E. A. Selvanathan
  • S. Selvanathan

Abstract

In the last two decades, total (pure) alcohol consumption in Australia has declined by about 31% and currently it is at the same level as it was in the 1950s. Australians consumed about 10 litres of pure alcohol per person in 1982 and now the level has declined to about 7 litres of pure alcohol per person. During the last four decades, per capita beer consumption has reached a peak of 140 litres in 1975 and has fallen to a low 93 litres in 1999; wine consumption has increased four-fold while spirits consumption has stayed around the same level. This paper, using the Australian consumption data for beer, wine and spirits for the period 1956-1999, aims to explain the change in consumption patterns of beer, wine and spirits by considering the effects due to changes in economic and demographic factors. The results show that while income and prices significantly influence the consumption patterns of alcohol, the increasing Australian elderly population also plays an important role.

Suggested Citation

  • E. A. Selvanathan & S. Selvanathan, 2004. "Economic and demographic factors in Australian alcohol demand," Applied Economics, Taylor & Francis Journals, vol. 36(21), pages 2405-2417.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2405-2417
    DOI: 10.1080/0003684042000280346
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    References listed on IDEAS

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    1. Kenneth W. Clements & E. Antony Selvanathan, 1988. "The Rotterdam Demand Model and its Application in Marketing," Marketing Science, INFORMS, vol. 7(1), pages 60-75.
    2. Kenneth W. Clements & Saroja Selvanathan, 1991. "The Economic Determinants Of Alcohol Consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(2), pages 209-231, August.
    3. Rodney Thom, 1984. "The demand for alcohol in Ireland," Working Papers 198424, School of Economics, University College Dublin.
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    6. Kenneth Clements & Wana Yang & Simon Zheng, 1997. "Is utility additive? The case of alcohol," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1163-1167.
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    Cited by:

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    2. Don Freeman, 2009. "Beer in Good Times and Bad: A U.S. State-Level Analysis of Economic Conditions and Alcohol Consumption," Working Papers 0906, Sam Houston State University, Department of Economics and International Business.
    3. Timothy R. Davis & Fredoun Z. Ahmadi-Esfahani & Susana Iranzo, 2008. "Demand under product differentiation: an empirical analysis of the US wine market ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(4), pages 401-417, December.
    4. Davis, Timothy R. & Ahmadi-Esfahani, Fredoun Z. & Iranzo, Susana, 2008. "Demand under product differentiation: an empirical analysis of the US wine market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-17, December.
    5. Joshua Byrnes & Anthony Shakeshaft & Dennis Petrie & Christopher Doran, 2016. "Is response to price equal for those with higher alcohol consumption?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 23-29, January.
    6. Benjamin Volland, 2013. "The History of an Inferior Good: Beer Consumption in Germany," Papers on Economics and Evolution 2012-19, Philipps University Marburg, Department of Geography.
    7. Harry Clarke, 2008. "The Economist’s Way of Thinking About Alcohol Policy," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 15(2), pages 27-44.
    8. James Fogarty, 2010. "The Demand For Beer, Wine And Spirits: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 428-478, July.
    9. V. J. Cano Fernandez & G. Guirao Perez & M. C. Rodriguez Donate & M. E. Romero Rodriguez, 2009. "An analysis of count data models for the study of exclusivity in wine consumption," Applied Economics, Taylor & Francis Journals, vol. 41(12), pages 1563-1574.

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