Determinants of Household Expenditures on Alcohol
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.
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|Date of creation:||01 Jul 1996|
|Date of revision:|
|Publication status:||Published in Journal of Consumer Affairs, Summer 1996, vol. 30 no. 1, pp. 48-67|
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