Determinants of Household Expenditures on Alcohol
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.
This is a working paper of an article from The Journal of Consumer Affairs 30 (1996): 48, doi: 10.1111/j.1745-6606.1996.tb00725.x.