Gradual switching regression estimates of alcohol demand elasticities

    Authors

    C. A. Gallet

    Comments

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    Abbreviated Journal Title

    Appl. Econ. Lett.

    Keywords

    Economics

    Abstract

    Given that alcohol remains a heavily taxed goad, studies of the demand for alcohol are numerous in the literature. This paper uses annual data from 1964-92 to estimate key elasticities of the US demand for distilled spirits. Unlike previous studies, which typically assume elasticities are constant over time, we allow elasticities to vary over time by estimating a gradual switching regression model. The results indicate that the demand for distilled spirits today differs substantially from the 1960s, suggesting that the efficacy of proposed policies is dependent on knowledge of this change in demand.

    Journal Title

    Applied Economics Letters

    Volume

    6

    Issue/Number

    6

    Publication Date

    1-1-1999

    Document Type

    Article

    Language

    English

    First Page

    377

    Last Page

    379

    WOS Identifier

    WOS:000081549600011

    ISSN

    1350-4851

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