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Determinants of Household Expenditures on Alcohol

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  • Yen, Steven
  • Jensen, Helen H.

Abstract

This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption. We also examine the effects of explanatory variables by calculating and decomposing the elasticities. Findings support the use of a more generalized error distribution. Income, region, education, and household demographics are among the significant determinants of alcohol expenditures.

Suggested Citation

  • Yen, Steven & Jensen, Helen H., 1996. "Determinants of Household Expenditures on Alcohol," Staff General Research Papers Archive 927, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:927
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    Cited by:

    1. Alfonso Miranda, 2010. "A double-hurdle count model for completed fertility data from the developing world," DoQSS Working Papers 10-01, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    2. Yaldız Hanedar, Elmas & Broccardo, Eleonora & Bazzana, Flavio, 2014. "Collateral requirements of SMEs: The evidence from less-developed countries," Journal of Banking & Finance, Elsevier, vol. 38(C), pages 106-121.
    3. Akinyosoye, Vincent O., 2007. "Demand For Dairy Products In Nigeria: Evidence From The Nigerian," Journal of Rural Economics and Development, University of Ibadan, Department of Agricultural Economics, vol. 16.
    4. Fuller, Frank H. & Beghin, John C. & Rozelle, Scott, 2007. "Consumption of dairy products in urban China: results from Beijing, Shangai and Guangzhou," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), December.
    5. Frank Crowley & John Eakins & Declan Jordan, 2012. "Participation,Expenditure and Regressivity in the Irish Lottery:Evidence from Irish Household Budget Survey 2004/2005," The Economic and Social Review, Economic and Social Studies, vol. 43(2), pages 199-225.
    6. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    7. Backus, Peter, 2010. "Is charity a homogeneous good?," The Warwick Economics Research Paper Series (TWERPS) 951, University of Warwick, Department of Economics.
    8. Eakins, John, 2016. "An application of the double hurdle model to petrol and diesel household expenditures in Ireland," Transport Policy, Elsevier, vol. 47(C), pages 84-93.
    9. Wang, Yuki, 2011. "Predicting aggregate food consumption for a specific geographic area: an application to southeast Minnesota," Master's Theses 161441, University of Minnesota, Department of Applied Economics.
    10. Federico Perali & David Aristei & Luca Pieroni, 2005. "Cohort analysis of alcohol consumption: a double hurdle approach," CHILD Working Papers wp09_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    11. repec:eee:eejocm:v:24:y:2017:i:c:p:75-95 is not listed on IDEAS
    12. David Aristei & Federico Perali & Luca Pieroni, 2008. "Cohort, age and time effects in alcohol consumption by Italian households: a double-hurdle approach," Empirical Economics, Springer, vol. 35(1), pages 29-61, August.
    13. Akerele, Dare & Tiffin, R. & Srinivasan, C. S., 2013. "Household Food Demand in Nigeria: an Application of Multivariate Double-hurdle Model," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158700, Agricultural Economics Society.
    14. Martinez-Espineira, Roberto, 2006. "A Box-Cox Double-Hurdle model of wildlife valuation: The citizen's perspective," Ecological Economics, Elsevier, vol. 58(1), pages 192-208, June.
    15. Yen, Steven T. & Yuan, Yan & Liu, Xiaowen, 2009. "Alcohol consumption by men in China: A non-Gaussian censored system approach," China Economic Review, Elsevier, vol. 20(2), pages 162-173, June.
    16. Andrew Tan & Steven Yen & Rodolfo Nayga, 2009. "Factors Affecting Alcohol Purchase Decisions and Expenditures: A Sample Selection Analysis by Ethnicity in Malaysia," Journal of Family and Economic Issues, Springer, vol. 30(2), pages 149-159, June.
    17. Fabiosa, Jacinto F., 2006. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," 2006 Annual meeting, July 23-26, Long Beach, CA 21417, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Masinde, Wanyama J. & Obare, Gideon A. & Owuor, George & Wasilwa, Lusike, 2013. "Factors Influencing Adoption of Tissue Culture Banana in Western Kenya," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160519, African Association of Agricultural Economists (AAAE).

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