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

Badi H. Baltagi, Rajeev K. Goel

Research output: Contribution to journalArticle

17 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 languageEnglish (US)
Pages (from-to)451-454
Number of pages4
JournalAmerican Journal of Agricultural Economics
Volume72
Issue number2
DOIs
StatePublished - May 1990
Externally publishedYes

Keywords

  • Bootlegging
  • Liquor demand
  • Quasi-experimental price elasticity

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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