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The Economic Determinants Of Alcohol Consumption

  • Kenneth W. Clements
  • Saroja Selvanathan

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.

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File URL: http://hdl.handle.net/10.1111/j.1467-8489.1991.tb00506.x
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Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 35 (1991)
Issue (Month): 2 (08)
Pages: 209-231

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Handle: RePEc:bla:ajarec:v:35:y:1991:i:2:p:209-231
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  1. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  2. K.W. Clements & E.A. Selvanathan, 1987. "The Rotterdam Demand Model and Its Application in Marketing," Economics Discussion / Working Papers 87-16, The University of Western Australia, Department of Economics.
  3. Penm, Jammie H, 1988. "An Econometric Study of the Demand for Bottled, Canned and Bulk Beer," The Economic Record, The Economic Society of Australia, vol. 64(187), pages 268-74, December.
  4. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
  5. Barnett, William A, 1979. "Theoretical Foundations for the Rotterdam Model," Review of Economic Studies, Wiley Blackwell, vol. 46(1), pages 109-30, January.
  6. 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.
  7. D. Pearce, 1986. "The Demand for Alcohol in New Zealand," Economics Discussion / Working Papers 86-02, The University of Western Australia, Department of Economics.
  8. 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.
  9. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-83, June.
  10. K.E. Quek, 1988. "The Demand of Alcohol in Canada: An econometric study," Economics Discussion / Working Papers 88-08, The University of Western Australia, Department of Economics.
  11. Laitinen, Kenneth, 1978. "Why is demand homogeneity so often rejected?," Economics Letters, Elsevier, vol. 1(3), pages 187-191.
  12. Jones, Andrew M, 1989. "A Systems Approach to the Demand for Alcohol and Tobacco," Bulletin of Economic Research, Wiley Blackwell, vol. 41(2), pages 85-105, April.
  13. Selvanathan, E A, 1991. "Further Results on Aggregation of Differential Demand Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(4), pages 799-805, July.
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