Hurdle Models of Alcohol and Tobacco Expenditure in South African Households
Marc Ground () and
Steven Koch ()
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Marc Ground: Department of Economics, University of Pretoria
No 200703, Working Papers from University of Pretoria, Department of Economics
Estimates of participation or expenditure elasticities depend upon the assumptions made regarding the observation of zero expenditure at the household level. This research examines two single-hurdle models across two commodities for which nearly two-thirds of the observations are zero. The research shows that one hurdle model consistently outperforms the other, and does so for intuitively appealing reasons.
JEL-codes: C31 D12 (search for similar items in EconPapers)
Pages: 25 pages
New Economics Papers: this item is included in nep-afr, nep-dev and nep-hea
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Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:200703
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