Meng, Y, Brennan, A, Purshouse, R et al. (4 more authors) (2014) Estimation of own and cross price elasticities of alcohol demand in the UK-A pseudo-panel approach using the Living Costs and Food Survey 2001-2009. Journal of Health Economics, 34. 96 - 103. ISSN 0167-6296
Abstract
The estimation of price elasticities of alcohol demand is valuable for the appraisal of price-based policy interventions such as minimum unit pricing and taxation. This study applies a pseudo-panel approach to the cross-sectional Living Cost and Food Survey 2001/2–2009 to estimate the own- and cross-price elasticities of off- and on-trade beer, cider, wine, spirits and ready-to-drinks in the UK. A pseudo-panel with 72 subgroups defined by birth year, gender and socioeconomic status is constructed. Estimated ownprice elasticities from the base case fixed effect models are all negative and mostly statically significant (p < 0.05). Off-trade cider and beer are most elastic (−1.27 and −0.98) and off-trade spirits and on-trade ready-to-drinks are least elastic (−0.08 and −0.19). Estimated cross-price elasticities are smaller in magnitude with a mix of positive and negative signs. The results appear plausible and robust and could be used for appraising the estimated impact of price-based interventions in the UK.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2014 The Author(s). This is an Open Access article distributed under the terms of the Creative Commons Attribution Licence (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. |
Keywords: | Alcohol demand, Elasticities, Cross price elasticities, Pseudo-panel |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Medicine, Dentistry and Health (Sheffield) > School of Health and Related Research (Sheffield) > ScHARR - Sheffield Centre for Health and Related Research |
Funding Information: | Funder Grant number MRC/ESRC G1000043 |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 08 May 2014 14:18 |
Last Modified: | 08 May 2014 14:18 |
Published Version: | http://dx.doi.org/10.1016/j.jhealeco.2013.12.006 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.jhealeco.2013.12.006 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:78871 |