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Are frequency and intensity of participation decision-bearing aspects of consumption? An analysis of drinking behaviour

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  • Fredrik Berggren
  • Matthew Sutton

Abstract

Analysing quantity consumed per-period implies a restriction on decisions about how frequently and intensely to consume. This 'quantity-hypothesis' is rejected based on estimated equations for the frequency and intensity of spirit consumption. Consequently, a simultaneous equation system for frequency and intensity is estimated as they enter the budget constraint as a multiplicative term. Income and education levels are found to be negatively related to intensity but not frequency. This may reflect differences in the shadow prices of frequency and intensity for different socioeconomic groups or heterogeneous preferences for intoxication and health. Distinguishing between these aspects of drinking patterns is important for the evaluation of the price-responsiveness of harmful drinking, restrictions on availability and the causes of inequalities in health.

Suggested Citation

  • Fredrik Berggren & Matthew Sutton, 1999. "Are frequency and intensity of participation decision-bearing aspects of consumption? An analysis of drinking behaviour," Applied Economics, Taylor & Francis Journals, vol. 31(7), pages 865-874.
  • Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:865-874
    DOI: 10.1080/000368499323823
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    References listed on IDEAS

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    1. Frank J. Chaloupka & Henry Wechsler, 1995. "The Impact of Price, Availability, and Alcohol Control Policies on Binge Drinking in College," NBER Working Papers 5319, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Gawain Heckley & Johan Jarl & Ulf-G Gerdtham, 2017. "Frequency and intensity of alcohol consumption: new evidence from Sweden," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(4), pages 495-517, May.
    2. Dennis Petrie & Christopher Doran & Anthony Shakeshaft & Rob Sanson-Fisher, 2009. "The demand for intensity versus frequency of alcohol consumption: Evidence from rural Australia," Dundee Discussion Papers in Economics 222, Economic Studies, University of Dundee.
    3. Nabanita Datta Gupta & Anton Nielsson, 2017. "Short- and Long-Term Effects of Adolescent Alcohol Access: Evidence from Denmark," Economics Working Papers 2017-03, Department of Economics and Business Economics, Aarhus University.
    4. Fichera, Eleonora & Gray, Ewan & Sutton, Matt, 2016. "How do individuals’ health behaviours respond to an increase in the supply of health care? Evidence from a natural experiment," Social Science & Medicine, Elsevier, vol. 159(C), pages 170-179.

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