Cross-section estimation of US demand for alcoholic beverage |
| |
| Authors: | Steven T Yen |
| |
| Institution: | Center for Agricultural and Rural Development , Iowa State University , Ames , Iowa , 50011-1070 , USA |
| |
| Abstract: | A flexible limited dependent variable model is used to examine US demand for alcoholic beverage. Parameterization and distributional assumptions of the double hurdle model (Cragg, 1971) and tobit model (Tobin, 1958) are rejected. Findings suggest that price, income, household composition and other characteristics have significant effects on alcohol consumption. Income and own-price elasticities are significant but relatively small. |
| |
| Keywords: | |
|
|
