Estimation of Individual Demand for Alcohol

Yuriy Andrienko () and A. Nemtsov
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Yuriy Andrienko: CEFIR

No w0089, Working Papers from Center for Economic and Financial Research (CEFIR)

Abstract: Using individual data from RLMS, the longitudinal survey of the representative sample of the Russian population, we study static and dynamic models of demand for alcohol. We show the demand curve has traditional negative slope for any type of alcoholic drink: vodka, beer, and wine. We find substitution of moonshine for vodka with higher price on vodka and between vodka&beer with higher price on one of them. As a result of substitution vodka price has no impact on total ethanol consumption, while higher price on beer and wine reduce demand for ethanol. We also demonstrate that income has important effect on demand for alcoholic drinks. Risk to be drinker is rising with individual income. Higher income results in lower consumption of moonshine and in higher consumption of vodka, beer, and wine.

Keywords: Alcohol; Demand; Russia (search for similar items in EconPapers)
JEL-codes: I1 I18 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2006-01
New Economics Papers: this item is included in nep-cis, nep-hea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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