The Demand for Alcohol in Thailand

Bird Chonviharnpan and Phil Lewis

Economic Papers, 2015, vol. 34, issue 1-2, 23-35

Abstract: type="main" xml:id="ecpa12095-abs-0001">

The purpose of this paper is to examine the factors affecting the likelihood of consuming and the amount spent on alcoholic beverages in Thailand. Heckman's sample selection model is applied to data from the 2009 Socio-Economic Survey of Thailand. Results suggest that household size, tenure and occupation have significant impacts on both the probability of alcohol consumption and spending levels. Income also plays a key role in explaining the amount spent on alcoholic beverages. Demand elasticities are calculated under the Extended Linear Expenditure System. Demand for alcoholic beverages is found to be inelastic for Thai drinkers.

Date: 2015
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