Empirical Regularities in Cross‐Country Alcohol Consumption

S. Selvanathan and E.A. Selvanathan
Authors registered in the RePEc Author Service: Eliyathamby Antony Selvanathan and Saroja Selvanathan

The Economic Record, 2005, vol. 81, issue s1, S128-S142

Abstract: This paper analyses the demand for the three beverages: beer, wine and spirits, within alcohol, at a cross‐country level for 10 countries: Australia, Canada, Finland, France, Japan, New Zealand, Norway, Sweden, the UK and the US. A number of empirical regularities were found at the cross‐country level. This includes: (i) the demand theory hypotheses, homogeneity and symmetry are generally acceptable; (ii) the additive utility hypothesis is also acceptable even for such narrowly defined commodities; (iii) in nine out of the 10 countries, beer is considered as a necessity, in half of the countries wine is a necessity and in all the countries spirits are a luxury; and (iv)in all the countries, the demand for beer, wine and spirits are price inelastic.

Date: 2005
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