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Alcohol quantity and quality price elasticities: quantile regression estimates

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Alcohol quantity and quality price elasticities : quantile regression estimates. / Pryce, Rob; Hollingsworth, Bruce Philip; Walker, Ian.

In: European Journal of Health Economics, 01.10.2018.

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@article{9bf454f7cae6442fa87557e56fc6e139,
title = "Alcohol quantity and quality price elasticities: quantile regression estimates",
abstract = "Many people drink more than the recommended level of alcohol, with some drinking substantially more. There is evidence that suggests that this leads to large health and social costs, and price is often proposed as a tool for reducing consumption.This paper uses quantile regression methods to estimate the differential price (and income) elasticities across the drinking distribution. This is also done for on-premise (pubs, bars and clubs) and off-premise (supermarkets and shops) alcohol separately. In addition, we examine the extent to which drinkers respond to price changes by varying the ‘quality’ of the alcohol that they consume. We find that heavy drinkers are much less responsive to price in terms of quantity, but that they are more likely to substitute with cheaper products when the price of alcohol increases. The implication is that price-based policies may have little effect in reducing consumption amongst the heaviest drinkers, provided they can switch to lower quality alternatives.",
keywords = "Alcohol demand, Quantile regression, Quality elasticity",
author = "Rob Pryce and Hollingsworth, {Bruce Philip} and Ian Walker",
year = "2018",
month = "10",
day = "1",
doi = "10.1007/s10198-018-1009-8",
language = "English",
journal = "European Journal of Health Economics",
issn = "1618-7598",
publisher = "Springer Verlag",

}

RIS

TY - JOUR

T1 - Alcohol quantity and quality price elasticities

T2 - quantile regression estimates

AU - Pryce, Rob

AU - Hollingsworth, Bruce Philip

AU - Walker, Ian

PY - 2018/10/1

Y1 - 2018/10/1

N2 - Many people drink more than the recommended level of alcohol, with some drinking substantially more. There is evidence that suggests that this leads to large health and social costs, and price is often proposed as a tool for reducing consumption.This paper uses quantile regression methods to estimate the differential price (and income) elasticities across the drinking distribution. This is also done for on-premise (pubs, bars and clubs) and off-premise (supermarkets and shops) alcohol separately. In addition, we examine the extent to which drinkers respond to price changes by varying the ‘quality’ of the alcohol that they consume. We find that heavy drinkers are much less responsive to price in terms of quantity, but that they are more likely to substitute with cheaper products when the price of alcohol increases. The implication is that price-based policies may have little effect in reducing consumption amongst the heaviest drinkers, provided they can switch to lower quality alternatives.

AB - Many people drink more than the recommended level of alcohol, with some drinking substantially more. There is evidence that suggests that this leads to large health and social costs, and price is often proposed as a tool for reducing consumption.This paper uses quantile regression methods to estimate the differential price (and income) elasticities across the drinking distribution. This is also done for on-premise (pubs, bars and clubs) and off-premise (supermarkets and shops) alcohol separately. In addition, we examine the extent to which drinkers respond to price changes by varying the ‘quality’ of the alcohol that they consume. We find that heavy drinkers are much less responsive to price in terms of quantity, but that they are more likely to substitute with cheaper products when the price of alcohol increases. The implication is that price-based policies may have little effect in reducing consumption amongst the heaviest drinkers, provided they can switch to lower quality alternatives.

KW - Alcohol demand

KW - Quantile regression

KW - Quality elasticity

U2 - 10.1007/s10198-018-1009-8

DO - 10.1007/s10198-018-1009-8

M3 - Journal article

JO - European Journal of Health Economics

JF - European Journal of Health Economics

SN - 1618-7598

ER -