title: Estimation of own and cross price elasticities of alcohol demand in the UK--A pseudo-panel approach using the Living Costs and Food Survey 2001-2009.
abstract: The estimation of price elasticities of alcohol demand is valuable for the appraisal of price-based policy interventions such as minimum unit pricing and taxation. This study applies a pseudo-panel approach to the cross-sectional Living Cost and Food Survey 2001/2-2009 to estimate the own- and cross-price elasticities of off- and on-trade beer, cider, wine, spirits and ready-to-drinks in the UK. A pseudo-panel with 72 subgroups defined by birth year, gender and socioeconomic status is constructed. Estimated own-price elasticities from the base case fixed effect models are all negative and mostly statically significant (p<0.05). Off-trade cider and beer are most elastic (-1.27 and -0.98) and off-trade spirits and on-trade ready-to-drinks are least elastic (-0.08 and -0.19). Estimated cross-price elasticities are smaller in magnitude with a mix of positive and negative signs. The results appear plausible and robust and could be used for appraising the estimated impact of price-based interventions in the UK.
authors: School of Health and Related Research (ScHARR), University of Sheffield, Sheffield, UK. Electronic address: y.meng@sheffield.ac.uk.
authors: Yang
authors: Y
authors: Meng
authors: School of Health and Related Research (ScHARR), University of Sheffield, Sheffield, UK.
authors: Alan
authors: A
authors: Brennan
authors: Department of Automatic Control and Systems Engineering, University of Sheffield, Sheffield, UK.
authors: Robin
authors: R
authors: Purshouse
authors: School of Health and Related Research (ScHARR), University of Sheffield, Sheffield, UK.
authors: Daniel
authors: D
authors: Hill-McManus
authors: School of Health and Related Research (ScHARR), University of Sheffield, Sheffield, UK.
authors: Colin
authors: C
authors: Angus
authors: School of Health and Related Research (ScHARR), University of Sheffield, Sheffield, UK.
authors: John
authors: J
authors: Holmes
authors: School of Health and Related Research (ScHARR), University of Sheffield, Sheffield, UK.
authors: Petra Sylvia
authors: PS
authors: Meier
mesh_terms: D000328:Adult; D000368:Aged; D000369:Aged, 80 and over; D000428:Alcohol Drinking / Q000191:economics / Q000453:epidemiology; D000434:Alcoholic Beverages / Q000191:economics* / Q000600:supply & distribution; D001515:Beer / Q000191:economics / Q000600:supply & distribution; D003365:Costs and Cost Analysis / Q000706:statistics & numerical data; D003625:Data Collection; D005260:Female; D006801:Humans; D007182:Income / Q000706:statistics & numerical data; D008297:Male; D008875:Middle Aged; D012959:Socioeconomic Factors; D006113:United Kingdom / Q000453:epidemiology
keywords: Alcohol demand; Cross price elasticities; Elasticities; Pseudo-panel