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Robust Demand Elasticities for Wine and Distilled Spirits: Meta-Analysis with Corrections for Outliers and Publication Bias

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  • Nelson, Jon P.

Abstract

This paper conducts a meta-analysis of price and income elasticities for wine and distilled spirits, which correct for outliers and publication bias. The sample of wine elasticities is obtained from 104 primary studies, and the sample of spirits elasticities is obtained from 111 primary studies. Robust weighted-means and meta-regressions are reported that correct for outliers, heterogeneity, heteroskedasticity, dependence, and publication bias. Compared to unweighted averages previously reported in the literature, the analysis yields less-elastic demands for both price and income. Average price elasticities obtained using cumulative meta-analysis are −0.45 for wine and −0.55 for spirits. Average income elasticities are 1.0 for both beverages. Bias due to publication selectivity is important. Country-level differences also are noted for both wine and spirits. Policy implications are discussed for pricing and taxation of alcohol beverages. (JEL Classifications: Q11, C18, I12)

Suggested Citation

  • Nelson, Jon P., 2013. "Robust Demand Elasticities for Wine and Distilled Spirits: Meta-Analysis with Corrections for Outliers and Publication Bias," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 294-317, December.
    • Handle: RePEc:cup:jwecon:v:8:y:2013:i:03:p:294-317_00
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    Citations

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    Cited by:

    1. Adrian R. Fleissig, 2016. "Changing Trends in U.S. Alcohol Demand," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(3), pages 263-276, September.
    2. Clements, Kenneth W. & Mariano, Marc Jim M. & Verikios, George & Wong, Berwyn, 2022. "How elastic is alcohol consumption?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 568-581.
    3. Lara Agnoli & J. François Outreville, 2021. "Wine Consumption and Culture: A Cross‐Country Analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1101-1124, September.
    4. Kenneth W. Clements & Yihui Lan & Haiyan Liu, 2020. "Understanding alcohol consumption across countries," Applied Economics, Taylor & Francis Journals, vol. 52(40), pages 4421-4439, August.
    5. Tanja Laković & Ana Mugoša & Mirjana Čizmović & Gordana Radojević, 2019. "Impact of Taxation Policy on Household Spirit Consumption and Public-Finance Sustainability," Sustainability, MDPI, vol. 11(20), pages 1-15, October.
    6. Bouët, Antoine & Emlinger, Charlotte & Lamani, Viola, 2017. "What Determines Exports of Luxury Products? The Case of Cognac," Journal of Wine Economics, Cambridge University Press, vol. 12(1), pages 37-58, February.
    7. Didier Tatoutchoup & Octave Keutiben, 2020. "Liberalization of the market for alcohol: Evidence from a Canadian province," Economics Bulletin, AccessEcon, vol. 40(1), pages 782-800.
    8. James Fogarty & Giri Parameswaran, 2017. "Alcohol Sin Taxes," Working Papers 257211, University of Western Australia, School of Agricultural and Resource Economics.

    More about this item

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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