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The demand for alcoholic beverages in Spain
Author(s) -
Angulo Ana María,
Gil José María,
Gracia Azucena
Publication year - 2001
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2001.tb00055.x
Subject(s) - tobit model , consumption (sociology) , economics , value (mathematics) , consumer expenditure , consumer expenditure survey , econometrics , consumer demand , almost ideal demand system , agricultural economics , microeconomics , public economics , production (economics) , statistics , mathematics , social science , aggregate expenditure , sociology
The objective of this study is to analyze the main determinants of alcoholic beverages consumption at home. Data comes from the latest Spanish Household National Survey, which provides information on expenditure and quantities of different food products by household. Because households are interviewed only 1 week, a large number of zeros have been recorded. Among the existing censured demand models (the double hurdle (DH) model; the purchase‐infrequency model; and the Tobit purchase‐infrequency model, among others) and after carrying out model selection tests, the DH model has been finally estimated. All expenditure elasticities are positive, corresponding the highest value to spirits. Own price elasticities are negative and also in this case the spirits exhibit the highest value. Socio‐economic variables also play an important role in explaining consumer purchase and consumption decisions.