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Spending on Alcohol: Evidence from the Family Expenditure Survey 1970-1983

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  • Atkinson, A B
  • Gomulka, J
  • Stern, N H

Abstract

This paper reports on the investigation of a model of the determination of the share of household expenditure on alcohol using FES data for the United Kingdom, 1970-83, i.e., a time series of cross sections. The authors pay special attention to the occurrence of zero expenditure, variations in characteristics across the population, and the modeling and interpretation of the stochastic term. This term is modeled using the gamma distribution (replacing the normal in Tobit); estimated parameters indicate strong positive skewness. Interactions between household characteristics and expenditure propensities are important. Copyright 1990 by Royal Economic Society.

Suggested Citation

  • Atkinson, A B & Gomulka, J & Stern, N H, 1990. "Spending on Alcohol: Evidence from the Family Expenditure Survey 1970-1983," Economic Journal, Royal Economic Society, vol. 100(402), pages 808-827, September.
    • Handle: RePEc:ecj:econjl:v:100:y:1990:i:402:p:808-27
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