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.


Issue Date:
1995
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/18549
Total Pages:
23
Series Statement:
CARD Working Paper 95-WP 144




 Record created 2017-04-01, last modified 2017-08-24

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