Skip to main content

Estimation of individual demand for alcohol

Citation

Andrienko, Yuriy & Nemtsov, Aleksandr (2005). Estimation of individual demand for alcohol. Centre for Economic and Financial Research, Economics Education and Research Consortium Working Paper Series No. w0089.

Abstract

Using individual data from RLMS, the longitudinal survey of the representative sample of the Russian population, we study static and dynamic models of demand for alcohol. We show the demand curve has traditional negative slope for any type of alcoholic drink: vodka, beer, and wine. We find substitution of moonshine for vodka with higher price on vodka and between vodka&beer with higher price on one of them. As a result of substitution vodka price has no impact on total ethanol consumption, while higher price on beer and wine reduce demand for ethanol. We also demonstrate that income has important effect on demand for alcoholic drinks. Risk to be drinker is rising with individual income. Higher income results in lower consumption of moonshine and in higher consumption of vodka, beer, and wine.

Reference Type

Journal Article

Year Published

2005

Journal Title

Centre for Economic and Financial Research, Economics Education and Research Consortium Working Paper Series No. w0089

Author(s)

Andrienko, Yuriy
Nemtsov, Aleksandr