Title

Gradual Switching Regression Estimates Of Alcohol Demand Elasticities

Abstract

Given that alcohol remains a heavily taxed good, 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.

Publication Date

1-1-1999

Publication Title

Applied Economics Letters

Volume

6

Issue

6

Number of Pages

377-379

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1080/135048599353122

Socpus ID

0040366002 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0040366002

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