Price sensitivity of alcoholic beverages: The differential response to price among different racial/ethnic populations.
Item
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Title
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Price sensitivity of alcoholic beverages: The differential response to price among different racial/ethnic populations.
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Identifier
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AAI9917706
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identifier
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9917706
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Creator
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Tung, Shin Ta.
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Contributor
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Adviser: Michael Grossman
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Date
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1999
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Language
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English
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Publisher
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City University of New York.
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Subject
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Economics, General | Economics, Labor | Sociology, Ethnic and Racial Studies
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Abstract
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The goal of this study is to explore whether various racial/ethnic populations differ significantly in alcohol price sensitivity in the relationship between gender and age and alcohol drinking patterns. The Second Health and Nutrition Survey (NHANES II) was used as data in order to take advantage of the large sample size with the characteristics of alcohol consumption in each subsample. The ordered logit model is the method to analyze the data because it captures the ordinal and preferential nature of alcohol consumption, and the determinants of drinking participation are assumed to be the same as those of drinking frequencies. In general, the study finds males drink more than females and females are more price responsive than males; drinking measure rises sharply in youth and falls gradually with advancing age; youths are more price sensitive than adults. Raising alcohol prices can reduce the probability of people becoming heavy drinkers, who are responsible for a large percentage of alcohol problems. In addition, in the more detailed results real beer price is an effective policy tool to curb beer consumption of white non-Hispanics and Hispanics, while real liquor price has a significant and negative impact on liquor consumption of black non-Hispanics. Governments should realize the differential responses to alcohol prices among various racial/ethnic, age, and gender subgroups in order to effectively reduce the alcohol-related problems.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
