Quasi-Experimental Price Elasticity of Liquor Demand in the United States: 1960–83

Badi Baltagi and Rajeev Goel

American Journal of Agricultural Economics, 1990, vol. 72, issue 2, 451-454

Abstract: This paper uses sixty-five recent tax changes on liquor in private licensed states over the period 1960–83 to update Simon's quasi-experimental price elasticity of liquor. Three alternative measures for liquor price are used, and the sensitivity of this price elasticity to border effect purchases as well as market changes over time are examined. Our results support a liquor price elasticity estimate of −.7. However, the confidence interval on this estimate is wide. Border effect purchases as well as changes in the liquor market over time are statistically insignificant.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.2307/1242348 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:72:y:1990:i:2:p:451-454.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().