Alcohol consumption by men in China: A non-Gaussian censored system approach |
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Authors: | Steven T. Yen Yan Yuan Xiaowen Liu |
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Affiliation: | aDepartment of Agricultural Economics, The University of Tennessee, Knoxville, TN 37996-4518, USA;bMorrison School of Management and Agribusiness, Arizona State University, Mesa, AZ 85212, USA |
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Abstract: | Consumption of beer, wine and spirits by men in China is investigated, using data from the 2006 China Health and Nutrition Survey. Censoring of consumption levels is accommodated by estimating a censored equation system, using quasi maximum-likelihood and copula methods which allow the specification of non-Gaussian error distributions. Findings suggest that a misspecified error distribution can obscure the effects of explanatory variables on alcohol consumption. The procedure produces very different empirical estimates from a more conventional (Gaussian) estimator. Income does not affect alcohol consumption, with socio-demographic factors such as education, employment, and marital status playing more definitive roles. Regional differences are also found. |
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Keywords: | Alcohol Censoring Copula Generalized log-Burr distribution Quasi maximum likelihood |
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