Determinants of Household Expenditures on Alcohol

Journal of Consumer Affairs - Tập 30 Số 1 - Trang 48-67 - 1996
Steven T. Yen1, Helen H. Jensen2
1Steven T. Yen is Lecturer, Department of Economics, University of Illinois at Urbana-Champaign, Ames
2Helen H. Jensen is Associate Professor, Department of Economics and Center for Agricultural and Rural Development, Iowa State University, Ames.

Tóm tắt

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.

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Journal of Consumer Affairs

Tập 30 Số 1

48-67

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