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Determinants of Household Expenditures on Alcohol

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  • Yen, Steven T.
  • Jensen, Helen H.

Abstract

This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption. We also examine the effects of explanatory variables by calculating and decomposing the elasticities. Findings support the use of a more generalized error distribution. Income, region, education, and household demographics are among the significant determinants of alcohol expenditures.

Suggested Citation

  • Yen, Steven T. & Jensen, Helen H., 1996. "Determinants of Household Expenditures on Alcohol," ISU General Staff Papers 199601010800001171, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:199601010800001171
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