A few drinks behind—Alcohol price and income elasticities in Europe: A microeconometric note

Samira Rousselière (), Gaëlle Petit (), Thomas Coisnon, Anne Musson and Damien Rousselière
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Samira Rousselière: IRSTV - Institut de Recherche en Sciences et Techniques de la Ville - FR 2488 - UA - Université d'Angers - UN - Université de Nantes - ECN - École Centrale de Nantes - ENSA Nantes - École nationale supérieure d'architecture de Nantes - ULR - La Rochelle Université - CNRS - Centre National de la Recherche Scientifique, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes
Gaëlle Petit: IRSTV - Institut de Recherche en Sciences et Techniques de la Ville - FR 2488 - UA - Université d'Angers - UN - Université de Nantes - ECN - École Centrale de Nantes - ENSA Nantes - École nationale supérieure d'architecture de Nantes - ULR - La Rochelle Université - CNRS - Centre National de la Recherche Scientifique, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes

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Abstract: We provide new cross-country evidence on alcohol price and income elasticities based on microdata on individual behaviour. Our approach is original as previous research mainly estimates determinants of consumption with macroeconomic data. We use the latest available wave of the European Social Survey, 2014, merged with the Annual Database of National Beverage Consumption. We estimate a generalised Heckman model on the individual and national determinants of alcohol consumption with standard errors bootstrapped at the country level. We were able to identify direct and indirect effects of price and income, including their specific impacts on drinkers and abstainers.

Keywords: Alcohol consumption; Alcohol income elasticities; Alcohol price elasticities; Generalized Heckman Model; Europe (search for similar items in EconPapers)
Date: 2021
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Published in Journal of Agricultural Economics, 2021, 73 (1), pp.301-315. ⟨10.1111/1477-9552.12453⟩

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Journal Article: A few drinks behind—Alcohol price and income elasticities in Europe: A microeconometric note (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03343520

DOI: 10.1111/1477-9552.12453

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