Alcohol consumption, censorship and misjudgement

Kenneth W. Clements, Haiyan Liu, Yashar Tarverdi

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

In the study of the economic determinants of alcohol consumption, there is an under-appreciated issue of sample selectivity as consumption is often not fully observed. Sample selectivity involves ignoring consumption below a censorship cut-off level. This article estimates a demand system for beer, wine and spirits with and without allowance for selectivity. Then using a simulation approach, it examines the impact of misjudgement in the censorship level on the estimated demand parameters. A mean squared error (MSE) criterion is suggested for determining the appropriate censorship level.

Original languageEnglish
Pages (from-to)5269-5276
Number of pages8
JournalApplied Economics
Volume50
Issue number49
DOIs
Publication statusPublished - 29 Jun 2018

Fingerprint

Selectivity
Censorship
Alcohol consumption
Wine
Economics
Simulation
Demand systems
Mean squared error

Cite this

Clements, Kenneth W. ; Liu, Haiyan ; Tarverdi, Yashar. / Alcohol consumption, censorship and misjudgement. In: Applied Economics. 2018 ; Vol. 50, No. 49. pp. 5269-5276.
@article{5c846d9aa05a42be80242fb7e73056b4,
title = "Alcohol consumption, censorship and misjudgement",
abstract = "In the study of the economic determinants of alcohol consumption, there is an under-appreciated issue of sample selectivity as consumption is often not fully observed. Sample selectivity involves ignoring consumption below a censorship cut-off level. This article estimates a demand system for beer, wine and spirits with and without allowance for selectivity. Then using a simulation approach, it examines the impact of misjudgement in the censorship level on the estimated demand parameters. A mean squared error (MSE) criterion is suggested for determining the appropriate censorship level.",
keywords = "Alcohol demand, censorship level misjudgement, sample selection, simulation",
author = "Clements, {Kenneth W.} and Haiyan Liu and Yashar Tarverdi",
year = "2018",
month = "6",
day = "29",
doi = "10.1080/00036846.2018.1486025",
language = "English",
volume = "50",
pages = "5269--5276",
journal = "Applied Economics",
issn = "0003-6846",
publisher = "Routledge",
number = "49",

}

Alcohol consumption, censorship and misjudgement. / Clements, Kenneth W.; Liu, Haiyan; Tarverdi, Yashar.

In: Applied Economics, Vol. 50, No. 49, 29.06.2018, p. 5269-5276.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Alcohol consumption, censorship and misjudgement

AU - Clements, Kenneth W.

AU - Liu, Haiyan

AU - Tarverdi, Yashar

PY - 2018/6/29

Y1 - 2018/6/29

N2 - In the study of the economic determinants of alcohol consumption, there is an under-appreciated issue of sample selectivity as consumption is often not fully observed. Sample selectivity involves ignoring consumption below a censorship cut-off level. This article estimates a demand system for beer, wine and spirits with and without allowance for selectivity. Then using a simulation approach, it examines the impact of misjudgement in the censorship level on the estimated demand parameters. A mean squared error (MSE) criterion is suggested for determining the appropriate censorship level.

AB - In the study of the economic determinants of alcohol consumption, there is an under-appreciated issue of sample selectivity as consumption is often not fully observed. Sample selectivity involves ignoring consumption below a censorship cut-off level. This article estimates a demand system for beer, wine and spirits with and without allowance for selectivity. Then using a simulation approach, it examines the impact of misjudgement in the censorship level on the estimated demand parameters. A mean squared error (MSE) criterion is suggested for determining the appropriate censorship level.

KW - Alcohol demand

KW - censorship level misjudgement

KW - sample selection

KW - simulation

UR - http://www.scopus.com/inward/record.url?scp=85049222179&partnerID=8YFLogxK

U2 - 10.1080/00036846.2018.1486025

DO - 10.1080/00036846.2018.1486025

M3 - Article

VL - 50

SP - 5269

EP - 5276

JO - Applied Economics

JF - Applied Economics

SN - 0003-6846

IS - 49

ER -