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The Economic Determinants Of Alcohol Consumption

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  • Clements, Kenneth W.
  • Selvanathan, Saroja

Abstract

In this paper is presented an analysis of the consumption patterns of beer, wine and spirits for Australia using data for the period 1955/56-1985/86. The validity of the demand theory hypotheses demand homogeneity and Slutsky symmetry has been tested using recently developed distribution-free procedures. The findings were that (i) beer and wine were necessities and spirits a strong luxury; (ii) beer and spirits are specific complements; and (iii) the homogeneity and symmetry hypotheses are acceptable. Preference for wine consumption seems to be independent of preference for beer and spirits.

Suggested Citation

  • Clements, Kenneth W. & Selvanathan, Saroja, 1991. "The Economic Determinants Of Alcohol Consumption," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(2), pages 1-23, August.
    • Handle: RePEc:ags:ajaeau:22766
    DOI: 10.22004/ag.econ.22766
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    References listed on IDEAS

    as
    1. Laitinen, Kenneth, 1978. "Why is demand homogeneity so often rejected?," Economics Letters, Elsevier, vol. 1(3), pages 187-191.
    2. Clements, Kenneth W & Johnson, Lester W, 1983. "The Demand for Beer, Wine, and Spirits: A Systemwide Analysis," The Journal of Business, University of Chicago Press, vol. 56(3), pages 273-304, July.
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    6. 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.
    7. William A. Barnett, 1979. "Theoretical Foundations for the Rotterdam Model," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 46(1), pages 109-130.
    8. 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.
    9. D. Pearce, 1986. "The Demand for Alcohol in New Zealand," Economics Discussion / Working Papers 86-02, The University of Western Australia, Department of Economics.
    10. Kenneth W. Clements & Antony Selvanathan & Saroja Selvanathan, 1996. "Applied Demand Analysis: A Survey," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 63-81, March.
    11. repec:bla:ecorec:v:64:y:1988:i:187:p:268-74 is not listed on IDEAS
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    Full references (including those not matched with items on IDEAS)

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