Determinants of Household Expenditures on Alcohol

Steven T. Yen and Helen H. Jensen

No 18549, Hebrew University of Jerusalem Archive from Hebrew University of Jerusalem

Abstract: 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.

Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 23
Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:ags:hebarc:18549

DOI: 10.22004/ag.econ.18549

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