TY - JOUR
T1 - The demand for alcohol
T2 - The differential response to price
AU - Manning, Willard G.
AU - Blumberg, Linda
AU - Moulton, Lawrence H.
N1 - Funding Information:
We would like thank: Phillip Cook, Michael Grossman. John Mullahy, Scott Zeger and two anonymous reviewers for their comments oa an earlier version of this paper; Susan Farreil and Mike Hilton of the National Institute for Alcohol Abuse and Alcoholism (NIAAA) for their support; and Owen Thornberry and his staff at the National Center for Health Statistics for linking price data to the public use files of the National Health Interview Survey. This study was supported by Grant I-R01-AA08460-01 from NIAAA, U.S. Department of Health and Human Services. The opinions and conclusions expressed are those of the authors and should not be construed as representing the opinion or policy of any agency of the U.S. Government, the University of Minnesota, the Urban Institute, or the Johns Hopkins University.
PY - 1995/6
Y1 - 1995/6
N2 - Although several studies indicate that drinking is responsive to price, little work has focused on whether prices have a differential effect on light, moderate, or heavy drinking. This study examines the price responsiveness of the demand for alcohol: whether heavy drinkers are less sensitive to price than light or moderate drinkers. The study uses data on alcohol consumption on the 1983 National Health Interview Survey. The results indicate that both light and heavy drinkers are much less price elastic than moderate drinkers. Further, we cannot reject the hypothesis that the very heaviest drinkers have perfectly price inelastic demands.
AB - Although several studies indicate that drinking is responsive to price, little work has focused on whether prices have a differential effect on light, moderate, or heavy drinking. This study examines the price responsiveness of the demand for alcohol: whether heavy drinkers are less sensitive to price than light or moderate drinkers. The study uses data on alcohol consumption on the 1983 National Health Interview Survey. The results indicate that both light and heavy drinkers are much less price elastic than moderate drinkers. Further, we cannot reject the hypothesis that the very heaviest drinkers have perfectly price inelastic demands.
KW - Alcohol
KW - Demand
KW - Price elasticity of demand
KW - Quantile regression
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U2 - 10.1016/0167-6296(94)00042-3
DO - 10.1016/0167-6296(94)00042-3
M3 - Article
C2 - 10154654
AN - SCOPUS:0029029424
SN - 0167-6296
VL - 14
SP - 123
EP - 148
JO - Journal of health economics
JF - Journal of health economics
IS - 2
ER -