Determinants of Household Expenditures on Alcohol

Steven T. Yen and Helen Jensen

ISU General Staff Papers from Iowa State University, Department of Economics

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.

Date: 1996-01-01
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Related works:
Working Paper: Determinants of Household Expenditures on Alcohol (1996)
Working Paper: Determinants of Household Expenditures on Alcohol (1995)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:199601010800001171

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