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Alcoholic beverage consumption in China: a censored demand system approach

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  • Suwen Pan
  • Cheng Fang
  • Jaime Malaga

Abstract

China's admission in the WTO and commitment to cut tariffs on alcohol related goods provide a considerable opportunity for the USA, Europe and other countries. The present study examines Chinese consumer behaviour with regard to alcoholic beverages (wine, wine cooler and beer) using a Chinese household survey data. The results show that beer and wine cooler are normal goods while wine is still a luxury good in China. The price elasticities of wine and wine cooler are larger than that of beer.

Suggested Citation

  • Suwen Pan & Cheng Fang & Jaime Malaga, 2006. "Alcoholic beverage consumption in China: a censored demand system approach," Applied Economics Letters, Taylor & Francis Journals, vol. 13(15), pages 975-979.
    • Handle: RePEc:taf:apeclt:v:13:y:2006:i:15:p:975-979
    DOI: 10.1080/13504850500425964
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    References listed on IDEAS

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    1. Shew-Jiuan Su & Steven Yen, 2000. "A censored system of cigarette and alcohol consumption," Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 729-737.
    2. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    3. Richard Green & Julian M. Alston, 1990. "Elasticities in AIDS Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 442-445.
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    Cited by:

    1. Xiaohua Yu & David Abler, 2010. "Interactions between cigarette and alcohol consumption in rural China," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(2), pages 151-160, April.
    2. Maria Erlinda M. Mutuc & Suwen Pan & Roderick M. Rejesus, 2007. "Household vegetable demand in the Philippines: Is there an urban-rural divide?," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 511-527.
    3. Andrew K.G. Tan & Steven T. Yen & Abdul Rahman Hasan, 2016. "Cigarette and Alcohol Expenditures in Malaysia: Implications for Anti‐Smoking and Drinking Policies," Asian Economic Journal, East Asian Economic Association, vol. 30(4), pages 401-421, December.
    4. Pan, Suwen & Jensen, Helen H., 2008. "Does the Food Stamp Program Affect Food Security Status and the Composition of Food Expenditures?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 21-35, April.
    5. 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.
    6. Guoqiang Tian & Feng Liu, 2011. "Is the Demand for Alcoholic Beverages in Developing Countries Sensitive to Price? Evidence from China," IJERPH, MDPI, vol. 8(6), pages 1-8, June.
    7. Mohammed AL-MAHISH, 2017. "Cigarette, Alcohol, and Drug Demand for Young Population," Expert Journal of Economics, Sprint Investify, vol. 5(2), pages 62-70.
    8. Andrew Tan & Steven Yen & Rodolfo Nayga, 2009. "Factors Affecting Alcohol Purchase Decisions and Expenditures: A Sample Selection Analysis by Ethnicity in Malaysia," Journal of Family and Economic Issues, Springer, vol. 30(2), pages 149-159, June.

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