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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(02), August.
    • Handle: RePEc:ags:ajaeau:22766
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    References listed on IDEAS

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    Cited by:

    1. Liesbeth Colen & Johan Swinnen, 2016. "Economic Growth, Globalisation and Beer Consumption," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 186-207, February.
    2. Kenneth W. Clements & Yihui Lan & Xueyan Zhao, 2005. "The Demand for Vice: Inter-Commodity Interactions with Uncertainty," Economics Discussion / Working Papers 05-30, The University of Western Australia, Department of Economics.
    3. Preety Srivastava & Keith R. McLaren & Michael Wohlgenant & Xueyan Zhao, 2014. "Econometric Modelling of Price Response by Alcohol Types to Inform Alcohol Tax Policies," Monash Econometrics and Business Statistics Working Papers 5/14, Monash University, Department of Econometrics and Business Statistics.
    4. J. Freebairn & E.A. Selvanathan & J. Fahrer & P. van der Lee, 1996. "The Economics of Taxing Wine," Economics Discussion / Working Papers 96-09, The University of Western Australia, Department of Economics.
    5. Kingston, Geoffrey & Melecky, Martin, 2007. "Currency preferences and the Australian dollar," Journal of International Money and Finance, Elsevier, vol. 26(3), pages 454-467, April.
    6. Edward Oczkowski, 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 93-110, April.
    7. Joshua Byrnes & Dennis Petrie & Christopher Doran & Anthony Shakeshaft, 2012. "The efficiency of a volumetric alcohol tax in Australia," Applied Health Economics and Health Policy, Springer, vol. 10(1), pages 37-49, January.
    8. 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.
    9. Wittwer, Glyn & Anderson, Kym, 1999. "Accounting for Growth in Australia’s Grape and Wine Industries, 1986 to 2003," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 125043, Australian Agricultural and Resource Economics Society.
    10. Clements, Kenneth W. & Gao, Grace, 2015. "The Rotterdam demand model half a century on," Economic Modelling, Elsevier, vol. 49(C), pages 91-103.
    11. Clements, Kenneth W & Selvanathan, Antony & Selvanathan, Saroja, 1996. "Applied Demand Analysis: A Survey," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 63-81, March.
    12. Wittwer, Glyn, 2000. "The Sensitivity Of Wine Industry Outcomes To Model Assumptions In Gst Scenarios," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123742, Australian Agricultural and Resource Economics Society.
    13. Kenneth Clements & Yihui Lan & Xueyan Zhao, 2010. "The demand for marijuana, tobacco and alcohol: inter-commodity interactions with uncertainty," Empirical Economics, Springer, vol. 39(1), pages 203-239, August.
    14. Dennis Petrie & Christopher Doran & Anthony Shakeshaft & Rob Sanson-Fisher, 2009. "The demand for intensity versus frequency of alcohol consumption: Evidence from rural Australia," Dundee Discussion Papers in Economics 222, Economic Studies, University of Dundee.
    15. P. Moffatt & D.J. Butler, 1996. "On the Demand for Hyper-Substitutes with Satiation," Economics Discussion / Working Papers 96-03, The University of Western Australia, Department of Economics.
    16. James Fogarty, 2004. "The Own-Price Elasticity of Alcohol: A Meta-Analysis," Economics Discussion / Working Papers 04-01, The University of Western Australia, Department of Economics.
    17. Saroja Selvanathan, 2006. "How similar are alcohol drinkers? International evidence," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1353-1362.
    18. K.W. Clements, 1993. "The Economics of Drinking and Smoking," Economics Discussion / Working Papers 93-13, The University of Western Australia, Department of Economics.

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