Quasi-experimental price elasticity of liquor demand in the united states: 1960-83

Badi H. Baltagi; Rajeev K. Goel

doi:10.2307/1242348

Quasi-experimental price elasticity of liquor demand in the united states: 1960-83

Badi H. Baltagi, Rajeev K. Goel

Research output: Contribution to journal › Article › peer-review

18 Scopus citations

Abstract

This paper uses sixty-five recent tax changes on liquor in private licensed states over the period 1960–83 to update Simon’s quasi-experimental price elasticity of liquor. Three alternative measures for liquor price are used, and the sensitivity of this price elasticity to border effect purchases as well as market changes over time are examined. Our results support a liquor price elasticity estimate of −.7. However, the confidence interval on this estimate is wide. Border effect purchases as well as changes in the liquor market over time are statistically insignificant.

Original language	English (US)
Pages (from-to)	451-454
Number of pages	4
Journal	American Journal of Agricultural Economics
Volume	72
Issue number	2
DOIs	https://doi.org/10.2307/1242348
State	Published - May 1990
Externally published	Yes

Keywords

Bootlegging
Liquor demand
Quasi-experimental price elasticity

ASJC Scopus subject areas

Agricultural and Biological Sciences (miscellaneous)
Economics and Econometrics

Access to Document

10.2307/1242348

Cite this

@article{9602943470b34c0cab37df193c28661a,

title = "Quasi-experimental price elasticity of liquor demand in the united states: 1960-83",

abstract = "This paper uses sixty-five recent tax changes on liquor in private licensed states over the period 1960–83 to update Simon{\textquoteright}s quasi-experimental price elasticity of liquor. Three alternative measures for liquor price are used, and the sensitivity of this price elasticity to border effect purchases as well as market changes over time are examined. Our results support a liquor price elasticity estimate of −.7. However, the confidence interval on this estimate is wide. Border effect purchases as well as changes in the liquor market over time are statistically insignificant.",

keywords = "Bootlegging, Liquor demand, Quasi-experimental price elasticity",

author = "Baltagi, {Badi H.} and Goel, {Rajeev K.}",

year = "1990",

month = may,

doi = "10.2307/1242348",

language = "English (US)",

volume = "72",

pages = "451--454",

journal = "American Journal of Agricultural Economics",

issn = "0002-9092",

publisher = "Oxford University Press",

number = "2",

}

TY - JOUR

T1 - Quasi-experimental price elasticity of liquor demand in the united states

T2 - 1960-83

AU - Baltagi, Badi H.

AU - Goel, Rajeev K.

PY - 1990/5

Y1 - 1990/5

N2 - This paper uses sixty-five recent tax changes on liquor in private licensed states over the period 1960–83 to update Simon’s quasi-experimental price elasticity of liquor. Three alternative measures for liquor price are used, and the sensitivity of this price elasticity to border effect purchases as well as market changes over time are examined. Our results support a liquor price elasticity estimate of −.7. However, the confidence interval on this estimate is wide. Border effect purchases as well as changes in the liquor market over time are statistically insignificant.

AB - This paper uses sixty-five recent tax changes on liquor in private licensed states over the period 1960–83 to update Simon’s quasi-experimental price elasticity of liquor. Three alternative measures for liquor price are used, and the sensitivity of this price elasticity to border effect purchases as well as market changes over time are examined. Our results support a liquor price elasticity estimate of −.7. However, the confidence interval on this estimate is wide. Border effect purchases as well as changes in the liquor market over time are statistically insignificant.

KW - Bootlegging

KW - Liquor demand

KW - Quasi-experimental price elasticity

UR - http://www.scopus.com/inward/record.url?scp=0011968937&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0011968937&partnerID=8YFLogxK

U2 - 10.2307/1242348

DO - 10.2307/1242348

M3 - Article

AN - SCOPUS:0011968937

SN - 0002-9092

VL - 72

SP - 451

EP - 454

JO - American Journal of Agricultural Economics

JF - American Journal of Agricultural Economics

IS - 2

ER -

Quasi-experimental price elasticity of liquor demand in the united states: 1960-83

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this