IDEAS home Printed from https://ideas.repec.org/a/spr/eujhec/v16y2015i2p185-199.html
   My bibliography  Save this article

Price elasticities of alcohol demand: evidence from Russia

Author

Listed:
  • Yevgeniy Goryakin
  • Bayard Roberts
  • Martin McKee

Abstract

In this paper, we estimate price elasticities of demand of several types of alcoholic drinks, using 14 rounds of data from the Russia Longitudinal Monitoring Survey-HSE, collected from 1994 until 2009. We deal with potential confounding problems by taking advantage of a large number of control variables, as well as by estimating community fixed effect models. All in all, although alcohol prices do appear to influence consumption behaviour in Russia, in most cases the size of effect is modest. The finding that two particularly problematic drinks—cheap vodka and fortified wine—are substitute goods also suggests that increasing their prices may not lead to smaller alcohol consumption. Therefore, any alcohol pricing policies in Russia must be supplemented with other measures, such as restrictions on numbers of sales outlets or their opening times. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Yevgeniy Goryakin & Bayard Roberts & Martin McKee, 2015. "Price elasticities of alcohol demand: evidence from Russia," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(2), pages 185-199, March.
    • Handle: RePEc:spr:eujhec:v:16:y:2015:i:2:p:185-199
    DOI: 10.1007/s10198-014-0565-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10198-014-0565-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10198-014-0565-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gallet, Craig A., 2007. "The demand for alcohol: a meta-analysis of elasticities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-15.
    2. Badi H. Baltagi & Ingo Geishecker, 2006. "Rational alcohol addiction: evidence from the Russian longitudinal monitoring survey," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 893-914, September.
    3. Vladimir Shkolnikov & Evgeny M. Andreev & Martin McKee & David A. Leon, 2013. "Components and possible determinants of decrease in Russian mortality in 2004-2010," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(32), pages 917-950.
    4. Duffy, Martyn, 1991. "Advertising and the Consumption of Tobacco and Alcoholic Drink: A System-Wide Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(4), pages 369-385, November.
    5. Andrienko Yury & Nemtsov Aleksandr, 2005. "Estimation of individual demand for alcohol," EERC Working Paper Series 05-10e, EERC Research Network, Russia and CIS.
    6. E.A. Selvanathan, 1991. "A Cross-Country Alcohol Consumption Comparison: An application of the Rotterdam demand system," Economics Discussion / Working Papers 91-04, The University of Western Australia, Department of Economics.
    7. Sonya Huffman & Marian Rizov, 2010. "The Rise of Obesity in Transition: Theory and Empirical Evidence from Russia," Journal of Development Studies, Taylor & Francis Journals, vol. 46(3), pages 574-594.
    8. James Fogarty, 2004. "The Own-Price Elasticity of Alcohol: A Meta-Analysis," Economics Discussion / Working Papers 04-01, The University of Western Australia, Department of Economics.
    9. A. J. Culyer & J. P. Newhouse (ed.), 2000. "Handbook of Health Economics," Handbook of Health Economics, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santosh Kumar, 2016. "Price Elasticity of Alcohol Demand in India," Working Papers 1610, Sam Houston State University, Department of Economics and International Business.
    2. Scheiring, Gábor & Azarova, Aytalina & Irdam, Darja & Doniec, Katarzyna Julia & McKee, Martin & Stuckler, David & King, Lawrence, 2021. "Deindustrialization and the Postsocialist Mortality Crisis," SocArXiv jpbct, Center for Open Science.
    3. Franks, Edwin & Bryant, William D.A., 2018. "The Uncompensated Law of Demand in an exchange economy," Economics Letters, Elsevier, vol. 168(C), pages 127-131.
    4. Kolosnitsyna, Marina & Sukhanova, Varvara, 2023. "Price elasticities revisited: The effect of price changes caused by taxation on the amount of alcohol consumed," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 69, pages 28-47.
    5. Deconinck, Koen & Swinnen, Johan, 2015. "Peer effects and the rise of beer in Russia," Food Policy, Elsevier, vol. 51(C), pages 83-96.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benjamin Volland, 2013. "The History of an Inferior Good: Beer Consumption in Germany," Papers on Economics and Evolution 2012-19, Philipps University Marburg, Department of Geography.
    2. Kolosnitsyna, Marina & Sukhanova, Varvara, 2023. "Price elasticities revisited: The effect of price changes caused by taxation on the amount of alcohol consumed," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 69, pages 28-47.
    3. Gallet, Craig A., 2007. "The demand for alcohol: a meta-analysis of elasticities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-15.
    4. Lorenz Kueng & Evgeny Yakovlev, 2016. "Long-Run Effects of Public Policies: Endogenous Alcohol Preferences and Life Expectancy in Russia," Working Papers w0219, New Economic School (NES).
    5. Concetta CASTIGLIONE & Ladislava GROCHOVÁ & Davide INFANTE & Janna SMIRNOVA, 2011. "The demand for beer in presence of past consumption and advertising in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(12), pages 589-599.
    6. Kenneth Clements & Yihui Lan & Xueyan Zhao, 2010. "The demand for marijuana, tobacco and alcohol: inter-commodity interactions with uncertainty," Empirical Economics, Springer, vol. 39(1), pages 203-239, August.
    7. Herzfeld, Thomas & Huffman, Sonya & Rizov, Marian, 2014. "The dynamics of food, alcohol and cigarette consumption in Russia during transition," Economics & Human Biology, Elsevier, vol. 13(C), pages 128-143.
    8. Clements, Kenneth W. & Mariano, Marc Jim M. & Verikios, George & Wong, Berwyn, 2022. "How elastic is alcohol consumption?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 568-581.
    9. Adrian R. Fleissig, 2016. "Changing Trends in U.S. Alcohol Demand," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(3), pages 263-276, September.
    10. Preety Srivastava & Keith R. McLaren & Michael Wohlgenant & Xueyan Zhao, 2014. "Econometric Modelling of Price Response by Alcohol Types to Inform Alcohol Tax Policies," Monash Econometrics and Business Statistics Working Papers 5/14, Monash University, Department of Econometrics and Business Statistics.
    11. Evgeny Yakovlev, 2016. "Demand for Alcohol Consumption and Implication for Mortality: Evidence from Russia," Working Papers w0221, Center for Economic and Financial Research (CEFIR).
    12. Kacper Ochocki, 2020. "The ability of excise duty to reduce market failures in Poland," Catallaxy, Institute of Economic Research, vol. 5(2), pages 75-86, December.
    13. Kenneth W. Clements & Yihui Lan & Haiyan Liu, 2020. "Understanding alcohol consumption across countries," Applied Economics, Taylor & Francis Journals, vol. 52(40), pages 4421-4439, August.
    14. Friberg, Richard & Paterson, Robert W. & Richardson, Andrew D., 2011. "Why is there a Home Bias? A Case Study of Wine," Journal of Wine Economics, Cambridge University Press, vol. 6(1), pages 37-66, January.
    15. James Fogarty, 2004. "The Own-Price Elasticity of Alcohol: A Meta-Analysis," Economics Discussion / Working Papers 04-01, The University of Western Australia, Department of Economics.
    16. Alexander S. Skorobogatov, 2014. "The Effect Of Closing Hour Restrictions On Alcohol Use And Abuse In Russia," HSE Working papers WP BRP 63/EC/2014, National Research University Higher School of Economics.
    17. David Blake & Angelika Nied, 1997. "The demand for alcohol in the United Kingdom," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1655-1672.
    18. Liesbeth Colen & Johan Swinnen, 2016. "Economic Growth, Globalisation and Beer Consumption," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 186-207, February.
    19. Karel Janda & Zuzana Lajksnerová & Jakub Mikolášek, 2019. "A General Equilibrium Model of Optimal Alcohol Taxation in the Czech Republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(5), pages 589-611.
    20. Baltagi, Badi H. & Yen, Yin-Fang, 2014. "Hospital treatment rates and spillover effects: Does ownership matter?," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 193-202.

    More about this item

    Keywords

    Alcohol demand; Problematic drinking; Former Soviet Union; I18 (Governmental policy; regulation and public health); D12 (Consumer economics: empirical analysis);
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eujhec:v:16:y:2015:i:2:p:185-199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.