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Alternative transformations in a class of limited dependent variable models: alcohol consumption by US women

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  • Steven Yen

Abstract

This study investigates alcohol consumption by women in the United States,using alternative specifications of the double-hurdle models which accommodate non-normal errors. The IHS double-hurdle model performs marginally better than the Box-Cox double-hurdle model but both models suggest very similar elasticities. The profile of a drinker includes white, black, smoker, homeowner, and residing in urban areas. Women who are older, pregnant or lactating, on special diet, and those with higher weight-height ratio are less likely to consume alcohol than others. Seasonal and regional variations are apparent. Smokers are more likely to consume alcohol and also consume more, while older women are less likely to drink and also drink less than others.

Suggested Citation

  • Steven Yen, 1995. "Alternative transformations in a class of limited dependent variable models: alcohol consumption by US women," Applied Economics Letters, Taylor & Francis Journals, vol. 2(8), pages 258-262.
    • Handle: RePEc:taf:apeclt:v:2:y:1995:i:8:p:258-262
    DOI: 10.1080/135048595357186
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    References listed on IDEAS

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    1. MacKinnon, James G & Magee, Lonnie, 1990. "Transforming the Dependent Variable in Regression Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 315-339, May.
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    3. Reynolds, Anderson & Shonkwiler, J S, 1991. "Testing and Correcting for Distributional Misspecifications in the Tobit Model: An Application of the Information Matrix Test," Empirical Economics, Springer, vol. 16(3), pages 313-323.
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    5. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    6. Amemiya, Takeshi & Powell, James L., 1981. "A comparison of the Box-Cox maximum likelihood estimator and the non-linear two-stage least squares estimator," Journal of Econometrics, Elsevier, vol. 17(3), pages 351-381, December.
    7. Yen, Steven, 1994. "Cross-Section Estimation of US Demand for Alcoholic Beverage," Staff General Research Papers Archive 761, Iowa State University, Department of Economics.
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    Cited by:

    1. David Aristei & Luca Pieroni, 2008. "A double-hurdle approach to modelling tobacco consumption in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(19), pages 2463-2476.
    2. Angulo, Ana Maria & Gil, Jose Maria & Gracia, Azucena, 2001. "The demand for alcoholic beverages in Spain," Agricultural Economics, Blackwell, vol. 26(1), pages 71-83, October.
    3. David Aristei & Federico Perali & Luca Pieroni, 2008. "Cohort, age and time effects in alcohol consumption by Italian households: a double-hurdle approach," Empirical Economics, Springer, vol. 35(1), pages 29-61, August.

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