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Hurdle Models of Alcohol and Tobacco Expenditure in South African Households

Author

Listed:
  • Marc Ground

    (Department of Economics, University of Pretoria)

  • Steven F. Koch

    (Department of Economics, University of Pretoria)

Abstract

Estimates of participation or expenditure elasticities depend upon the assumptions made regarding the observation of zero expenditure at the household level. This research examines two single-hurdle models across two commodities for which nearly two-thirds of the observations are zero. The research shows that one hurdle model consistently outperforms the other, and does so for intuitively appealing reasons.

Suggested Citation

  • Marc Ground & Steven F. Koch, 2007. "Hurdle Models of Alcohol and Tobacco Expenditure in South African Households," Working Papers 200703, University of Pretoria, Department of Economics.
  • Handle: RePEc:pre:wpaper:200703
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    Cited by:

    1. Willem H. Boshoff, 2008. "Cigarette Demand In South Africa Over 1996‐2006: The Role Of Price, Income And Health Awareness," South African Journal of Economics, Economic Society of South Africa, vol. 76(1), pages 118-131, March.
    2. Njue, E. & Kirimi, L. & Mathenge, M., 2018. "Uptake of Crop Insurance among Smallholder Farmers: Insights from Maize Producers in Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277023, International Association of Agricultural Economists.
    3. Jonathan Meer & Harvey S. Rosen, 2009. "Family Bonding with Universities," NBER Working Papers 15493, National Bureau of Economic Research, Inc.
    4. Ogundari, Kolawole & Arifalo, Sadiat Funmilayo, 2013. "Determinants of Household Demand for Fresh Fruit and Vegetable in Nigeria: A Double Hurdle Approach," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(3), pages 1-18, August.

    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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