The demand for alcohol: a meta-analysis of elasticities^*

Craig A. Gallet,

Craig A. Gallet

Economics at California State University, Sacramento, California, USA

Craig A. Gallet (email: [email protected]) is an Associate Professor of Economics at California State University, Sacramento, California, USA.

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Craig A. Gallet,

Craig A. Gallet

Economics at California State University, Sacramento, California, USA

Craig A. Gallet (email: [email protected]) is an Associate Professor of Economics at California State University, Sacramento, California, USA.

Search for more papers by this author

First published: 09 May 2007

https://doi.org/10.1111/j.1467-8489.2007.00365.x

Citations: 213

The author would like to thank the Editor of this journal and two anonymous referees for their helpful comments and suggestions.

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Abstract

Numerous studies have estimated elasticities of alcohol demand using different procedures. Because of widespread differences in demand estimates, however, it is difficult to synthesise the literature into coherent meaning. This study improves our understanding of alcohol demand by reporting results from a meta-analysis of 132 studies. Specifically, regressing estimated price, income and advertising elasticities of alcohol on variables accounting for study characteristics, we find alcohol elasticities to be particularly sensitive to demand specification, data issues and various estimation methods. Furthermore, compared to other alcoholic beverages, beer elasticities tend to be more inelastic.

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Volume51, Issue2

June 2007

Pages 121-135

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The demand for alcohol: a meta-analysis of elasticities^*