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Price elasticities of alcohol demand: evidence from Russia

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  • Yevgeniy Goryakin
  • Bayard Roberts
  • Martin McKee

Abstract

In this paper, we estimate price elasticities of demand of several types of alcoholic drinks, using 14 rounds of data from the Russia Longitudinal Monitoring Survey-HSE, collected from 1994 until 2009. We deal with potential confounding problems by taking advantage of a large number of control variables, as well as by estimating community fixed effect models. All in all, although alcohol prices do appear to influence consumption behaviour in Russia, in most cases the size of effect is modest. The finding that two particularly problematic drinks—cheap vodka and fortified wine—are substitute goods also suggests that increasing their prices may not lead to smaller alcohol consumption. Therefore, any alcohol pricing policies in Russia must be supplemented with other measures, such as restrictions on numbers of sales outlets or their opening times. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Yevgeniy Goryakin & Bayard Roberts & Martin McKee, 2015. "Price elasticities of alcohol demand: evidence from Russia," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(2), pages 185-199, March.
    • Handle: RePEc:spr:eujhec:v:16:y:2015:i:2:p:185-199
    DOI: 10.1007/s10198-014-0565-9
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    References listed on IDEAS

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    7. Sonya Huffman & Marian Rizov, 2010. "The Rise of Obesity in Transition: Theory and Empirical Evidence from Russia," Journal of Development Studies, Taylor & Francis Journals, vol. 46(3), pages 574-594.
    8. 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.
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    Cited by:

    1. Scheiring, Gábor & Azarova, Aytalina & Irdam, Darja & Doniec, Katarzyna Julia & McKee, Martin & Stuckler, David & King, Lawrence, 2021. "Deindustrialization and the Postsocialist Mortality Crisis," SocArXiv jpbct, Center for Open Science.
    2. Franks, Edwin & Bryant, William D.A., 2018. "The Uncompensated Law of Demand in an exchange economy," Economics Letters, Elsevier, vol. 168(C), pages 127-131.
    3. Kolosnitsyna, Marina & Sukhanova, Varvara, 2023. "Price elasticities revisited: The effect of price changes caused by taxation on the amount of alcohol consumed," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 69, pages 28-47.
    4. Santosh Kumar, 2016. "Price Elasticity of Alcohol Demand in India," Working Papers 1610, Sam Houston State University, Department of Economics and International Business.
    5. Deconinck, Koen & Swinnen, Johan, 2015. "Peer effects and the rise of beer in Russia," Food Policy, Elsevier, vol. 51(C), pages 83-96.

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    More about this item

    Keywords

    Alcohol demand; Problematic drinking; Former Soviet Union; I18 (Governmental policy; regulation and public health); D12 (Consumer economics: empirical analysis);
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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