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Hurdle Models Of Alcohol And Tobacco Expenditure In South African Households1

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  • Marc Ground
  • Steven F Koch

Abstract

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.

Suggested Citation

  • Marc Ground & Steven F Koch, 2008. "Hurdle Models Of Alcohol And Tobacco Expenditure In South African Households1," South African Journal of Economics, Economic Society of South Africa, vol. 76(1), pages 132-143, March.
    • Handle: RePEc:bla:sajeco:v:76:y:2008:i:1:p:132-143
    DOI: 10.1111/j.1813-6982.2008.00156.x
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    References listed on IDEAS

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    1. Murray Leibbrandt & James Levinsohn & Justin McCrary, 2005. "Incomes in South Africa since the fall of Apartheid," Working Papers 536, Research Seminar in International Economics, University of Michigan.
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    Cited by:

    1. Koch, Steven & Alaba, Olufunke, 2010. "On health insurance and household decisions: A treatment effect analysis," Social Science & Medicine, Elsevier, vol. 70(2), pages 175-182, January.
    2. Steven F. Koch & Gauthier Tshiswaka-Kashalala, 2008. "Tobacco Substitution and the Poor," Working Papers 200832, University of Pretoria, Department of Economics.
    3. Adél Bosch & Steven F. Koch, 2014. "Using a Natural Experiment to Examine Tobacco Tax Regressivity," Working Papers 434, Economic Research Southern Africa.
    4. Sicelo Ignatius Dlamini & Wen-Chi Huang, 2019. "A Double Hurdle Estimation of Sales Decisions by Smallholder Beef Cattle Farmers in Eswatini," Sustainability, MDPI, vol. 11(19), pages 1-27, September.
    5. Thibaut, Erik & Eakins, John & Vos, Steven & Scheerder, Jeroen, 2017. "Time and money expenditure in sports participation: The role of income in consuming the most practiced sports activities in Flanders," Sport Management Review, Elsevier, vol. 20(5), pages 455-467.
    6. Reneé van Eyden, 2012. "Consumer demand for alcoholic beverages and tobacco in Lesotho: A double-hurdle approach," Working Papers 315, Economic Research Southern Africa.
    7. Njue, E. & Kirimi, L. & Mathenge, M., 2018. "Uptake of Crop Insurance among Smallholder Farmers: Insights from Maize Producers in Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277023, International Association of Agricultural Economists.
    8. Jonathan Meer & Harvey S. Rosen, 2009. "Family Bonding with Universities," NBER Working Papers 15493, National Bureau of Economic Research, Inc.
    9. Ndoro, Jorine T. & Hitayezu, Patrick & Mudhara, Maxwell & Chimonyo, Michael, 2013. "Livelihood factors influencing market participation and supply volumes decisions among smallholder cattle farmers in the Okhahlamba Local Municipality, South Africa: Implications for agricultural exte," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160477, African Association of Agricultural Economists (AAAE).
    10. Yen, Steven T. & Yuan, Yan & Liu, Xiaowen, 2009. "Alcohol consumption by men in China: A non-Gaussian censored system approach," China Economic Review, Elsevier, vol. 20(2), pages 162-173, June.
    11. Egemen İPEK, 2019. "An Empirical Study on Alcohol Participation and Consumption Decision in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    12. Koch, Steven F., 2018. "Quasi-experimental evidence on tobacco tax regressivity," Social Science & Medicine, Elsevier, vol. 196(C), pages 19-28.

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