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The demand for alcohol: the differential response to price.
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The demand for alcohol: the differential response to price.

Author: WG Manning Affiliation: School of Public Health, University of Minnesota, Minneapolis 55455, USA.; L Blumberg; LH Moulton
Edition/Format: Article Article : English
Publication:Journal of health economics, 1995 Jun; 14(2): 123-48
Summary:
Although several studies indicate that drinking is responsive to price, little work has focused on whether prices have a differential effect on light, moderate, or heavy drinking. This study examines the price responsiveness of the demand for alcohol: whether heavy drinkers are less sensitive to price than light or moderate drinkers. The study uses data on alcohol consumption on the 1983 National Health Interview  Read more...
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Details

Document Type: Article
All Authors / Contributors: WG Manning Affiliation: School of Public Health, University of Minnesota, Minneapolis 55455, USA.; L Blumberg; LH Moulton
ISSN:0167-6296
Language Note: English
Unique Identifier: 121714678
Awards:

Abstract:

Although several studies indicate that drinking is responsive to price, little work has focused on whether prices have a differential effect on light, moderate, or heavy drinking. This study examines the price responsiveness of the demand for alcohol: whether heavy drinkers are less sensitive to price than light or moderate drinkers. The study uses data on alcohol consumption on the 1983 National Health Interview Survey. The results indicate that both light and heavy drinkers are much less price elastic than moderate drinkers. Further, we cannot reject the hypothesis that the very heaviest drinkers have perfectly price inelastic demands.

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