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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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    References listed on IDEAS

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    1. Murray Leibbrandt & James Levinsohn & Justin McCrary, 2005. "Incomes in South Africa Since the Fall of Apartheid," NBER Working Papers 11384, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Koch, Steven & Alaba, Olufunke, 2010. "On health insurance and household decisions: A treatment effect analysis," Social Science & Medicine, Elsevier, vol. 70(2), pages 175-182, January.
    2. Steven F. Koch & Gauthier Tshiswaka-Kashalala, 2008. "Tobacco Substitution and the Poor," Working Papers 200832, University of Pretoria, Department of Economics.
    3. 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.
    4. Adel Bosch and Steven F. Koch, 2014. "Using a Natural Experiment to Examine Tobacco Tax Regressivity," Working Papers 434, Economic Research Southern Africa.
    5. Jonathan Meer & Harvey S. Rosen, 2009. "Family Bonding with Universities," NBER Working Papers 15493, National Bureau of Economic Research, Inc.
    6. Ndoro, Jorine T. & Hitayezu, Patrick & Mudhara, Maxwell & Chimonyo, Michael, 2013. "Livelihood factors influencing market participation and supply volumes decisions among smallholder cattle farmers in the Okhahlamba Local Municipality, South Africa: Implications for agricultural exte," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160477, African Association of Agricultural Economists (AAAE).
    7. 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.
    8. Ramaele Moshoeshoe, 2012. "Consumer demand for alcoholic beverages and tobacco in Lesotho: A double-hurdle approach," Working Papers 315, Economic Research Southern Africa.
    9. repec:eee:socmed:v:196:y:2018:i:c:p:19-28 is not listed on IDEAS
    10. repec:eee:spomar:v:20:y:2017:i:5:p:455-467 is not listed on IDEAS
    11. Ogundari, Kolawole & Arifalo, Sadiat Funmilayo, 0. "Determinants of Household Demand for Fresh Fruit and Vegetable in Nigeria: A Double Hurdle Approach," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 52.

    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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