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Consumer sensitivity to changes in tax policy on consumption of alcohol
Author(s) -
Smith David E.,
Mitry Darryl J.
Publication year - 2006
Publication title -
international journal of consumer studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 1470-6423
DOI - 10.1111/j.1470-6431.2006.00509.x
Subject(s) - per capita , consumption (sociology) , overtime , economics , context (archaeology) , alcohol consumption , wine , public economics , demographic economics , alcohol , food science , environmental health , labour economics , medicine , geography , population , social science , biochemistry , chemistry , archaeology , sociology
Marketers and economists have followed the consumption patterns of alcoholic beverages for many years. Public officials have studied the negative effects of consuming alcohol and have advocated a variety of measures to curtail consumption. Previous studies have also measured the price elasticity. This comparative study is based on a 40‐year analysis, and compares the consumption patterns for beer, spirits and wine in three Nordic countries. Although the cultural context of Denmark, Norway and Sweden are similar, nevertheless significant differences in the patterns of consumption and prices for alcoholic beverages have been evidenced overtime. A comparison of the per capita drinking patterns and the taxation effectiveness are presented. Even though the elasticities varied, the data indicate relative sensitivity to price changes and a decline in spirits consumption as well as switching effects to lower alcohol‐content beverages.