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How similar are alcohol drinkers? International evidence

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Abstract

Stigler and Becker (1977) argue that tastes neither change capriciously nor differ importantly between people; it is differences in prices and incomes that determine differences in behaviour. In this paper we analyse the alcohol consumption patterns of drinkers from 8 industrialized countries. We identify a number of empirical regularities and verify Stigler and Becker's hypothesis that income and price elasticities of demand are international constants by showing that alcohol consumption patterns in the eight countries exhibit intriguing similarities. The income and price elasticities of alcohol are found to be about 0.8 and -0.6, respectively, in all eight countries.

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  • Saroja Selvanathan, 2006. "How similar are alcohol drinkers? International evidence," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1353-1362.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1353-1362
    DOI: 10.1080/00036840500396780
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    1. Kenneth W. Clements & Saroja Selvanathan, 1991. "The Economic Determinants Of Alcohol Consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(2), pages 209-231, August.
    2. E.A. Selvanathan, 1989. "Advertising and Alcohol Demand in the UK: Further results," Economics Discussion / Working Papers 89-20, The University of Western Australia, Department of Economics.
    3. Martyn Duffy, 2001. "Advertising in consumer allocation models: choice of functional form," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 437-456.
    4. Pollak, Robert A & Wales, Terence J, 1987. "Pooling International Consumption Data," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 90-99, February.
    5. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
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    2. 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.
    3. 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.
    4. David Aristei & Luca Pieroni, 2010. "Habits, Complementarities and Heterogeneity in Alcohol and Tobacco Demand: A Multivariate Dynamic Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(4), pages 428-457, August.
    5. Clements, Ken & Lan, Yihui & Liu, Haiyan, 2020. "Understanding Alcohol Consumption across Countries," 2020 Conference (64th), February 12-14, 2020, Perth, Western Australia 305249, Australian Agricultural and Resource Economics Society.
    6. Bartkus Algirdas, 2019. "The Impact of Excise Tax Increases on Ethyl Alcohol Sales in Lithuania," Ekonomika (Economics), Sciendo, vol. 98(2), pages 55-75, December.
    7. Benjamin Volland, 2013. "The History of an Inferior Good: Beer Consumption in Germany," Papers on Economics and Evolution 2012-19, Philipps University Marburg, Department of Geography.

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