A Systems Approach to the Demand for Alcohol and Tobacco
This paper adopts a systems approach to estimate budget share equations for four categories of alcoholic drink and for tobacco using quarterly expenditure data for the period 1964 to 1983. The emphasis is on the importance of the tolerance effects of addiction and on the smoker's participation decision in correctly specifying the estimating equations. The estimates suggest that there is something to be gained by introducing variables to indicate changes in the distribution of income and the demographic structure of the population. Copyright 1989 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research
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Volume (Year): 41 (1989)
Issue (Month): 2 (April)
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