Alcohol Consumption in Family Budgets: Effects of Purchasing Power and Households Demographic Composition

Main Article Content

Rodrigo García Arancibia

Keywords

consumption, alcohol, households, Engel curves, Santa Fe - Argentina.

Abstract

Among the problems associated with family alcohol consumption is the effect on household resource distribution, with a larger incidence in those households that are socially more vulnerable. This study examines the influence that household socioeconomic and demographic characteristics have on the share of alcoholic beverages in the household budget, using data from Santa Fe, Argentina for the period 2004-2005. Engel parametric curves are estimated using a sample selection model (Tobit type II). The sample is subdivided using the poverty line as the criterion. The results show that the most relevant characteristics differ depending on whether the household is poor or not. In non-poor households, variables such as the age of the household head, the share of women and the number of minors have a statistically significant effect on alcohol’s share of expenditures. In contrast, only characteristics related to purchasing power are relevant in poor households.

Downloads

Download data is not yet available.
Abstract 1814 | PDF (Español) Downloads 2300

References

Banks J., Blundel, L. R., & Lewbel, A. (1997). Cuadratic Engel Curves and Consumer Demand. The Review of Economics and Statistics, 79, 4, 527-39.

Barten, A. P. (1964). Family Composition, Prices and Expenditure Patterns. En P. Hart, M. Gordon, & J. K. Whitaker (Eds.), Econometric Analysis for National Economic Planning. Londres: Butterworths.

Blundell, R., & Duncan, A. (1998). Kernel Regression in Empirical Microeconomics. Journal of Human Resources, 33, 1, 62-87.

Bonu, S., Rani, M., Jha, P., Peters, D., & Nguyen, S. (2004). Household Tabacco and Alcohol Use, and Child Health: An Exploratory Study from India. Health Policy, 70, 67-83.

Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: Methods and Applications. Nueva York: Cambridge University Press.

Clements, K., & Sekvanathan, S. (1991). The Economics Determinants of Alcohol Consumption. Australian Journal of Agricultural Economics, 32, 2, 9-231.

Cleveland, W. S. (1979). Robust Locally Weighted Fitting and Smoothing Scatterplots. Journal of the American Statistical Association, 74, 829-36.

Deaton A., & Paxon, C. (1998). Economies of Scale, Household Size, and the Demand for Food. The Journal of Political Economy, 106, 5, 897-930.

Gan, L., & Vernon, V. (2003). Testing the Barten Model of Economies of Scale in Household Consumption: Toward Resolving a Paradox of Deaton and Paxson. Journal of Political Economy, 111, 6, 1361-77.

García Arancibia, R., Vicentin, J., Rossini, G., & Depetris Guiguet, E. (2011a). Alcohol, pobreza y cantidad de menores en hogares santafesinos. Actas del V Congreso de Problemáticas Sociales Contemporáneas. Santa Fe: Universidad Nacional del Litoral.

García Arancibia, R., Depetris Guiguet, E., & Rossini, G. (2011b). Decisiones de compra de bebidas alcohólicas en Santa Fe según lugar de consumo. Anales de la XLVI Reunión Anual de la Asociación Argentina de Economía Política, Mar del Plata: AAEP.

García Arancibia, R., Depetris Guiguet, E., & Rossini, G. (2011c). Participación en el consumo de bebidas alcohólicas en Santa Fe. Un enfoque multivariado. Actas del XXXIX Coloquio Argentino de Estadística. Santa Fe: Sociedad Argentina de Estadística – Universidad Nacional del Litoral.

Haque, O. (2005). Income Elasticity and Economic Development. Methods and Applications. The Netherlands: Springer.

Harris, M., Ramful, P., & Zhao, X. (2006). An Ordered Generalized Extreme Value Model with Application to Alcohol Consumption in Australia. Journal of Health Economics, 25, 782- 801.

Heckman, J. (1979). Sample Selection Bias as a Specification Error. Econometrica, 47, 153-61.

Hein, D. (1996). The Relationships Alcohol Consumption and Earnings. Journal of Studies on Alcohol and Drugs, 57, 5, 536-42.

Instituto Provincial de Estadística y Censos (IPEC)-Santa Fe (2010). Encuesta Nacional de Gastos de Hogares 2004/05 para la provincia de Santa Fe. Convenio IPEC-Universidad Nacional del Litoral.

Lee, C., Chongsuvivatwong, V., Geater, A., & Apakupakul, N. (2009). Contextual and Individual Demographic Determinants of Alcohol Consumption and Smoking: A Comparative Study in Southwestern China y Southern Thailan. Southeast Asian J Trop Med Public Health, 40, 2, 270-79.
Leser, C. E. (1964). Forms of Engel Functions. Econometrica, 31, 694-703.

Lewbel, A. (2008). Engel Curve. En S. N. Durlauf & L. E. Blume (Eds.), The New Palgrave Dictionary of Economics, 2.a edición. Palgrave Macmillan.

Madden, D. (2008). Sample Selection versus Two Part Models Revisited: the Case of Female Smoking and
Drinking. Journal of Health Economics, 27(2), 300-07.

McNeill, A. (1999). Alcohol en la familia. Adicciones, 11, 1, 3-6.

Menon, M., Perali, F., & Piccoli, L. (2008). The Pasive Dinking Effect: Evidence from Italy. W-P 33, Paris-Jourdan Sciences Economiques Laboratoire d’Economie Appliquée - INRA.

Munne, M. I. (2005). Social Consequences of Alcohol Consumption in Argentina. Alcohol, Gender and Drinking Problems. Perspective from Low and Middle Income Countries. Organización Mundial de la Salud, Ch. 2, 25-48.

Organización Mundial de la Salud (2011). Global Status Report on Alcohol and Health. Suiza: Organización Mundial de la Salud.

Pan, S., Fang, C., & Malaga, J. (2006). Alcoholic Beverage Consumption in China: A Censored Demand System Approach. Applied Economics Letters, 13, 975-79.

Peele, S. (1997). Utilizing Culture and Behavior in Epidemiological Models of Alcohol Consumption and Consequences for Western nations. Alcohol, 32, 51-64.

Pu, C., Lan, V., Chou, Y., & Lan, C. (2008). The Crowding-Out Effects of Tobacco and Alcohol where Expenditure Shares are Low: Analyzing Expenditure Data for Taiwan. Social Science and Medicine, 66(9), 1979-89.

Ramful, P., & Zhao, X. (2008). Individual Heterogeneity in Alcohol Consumption: The Case of Beer, Wine and Spirits in Australia. Economic Record, 84, 265, 207-22.

Slapak, S., & Grigoravicius, M. (2005). Estudio exploratorio sobre la presencia del consumo de sustancias psicoactivas en niños entre 10 y 12 años y en sus padres o adultos responsables. Anuario de Investigaciones, 12, 153-59. Ciudad Autónoma de Buenos Aires.

Sriboonchitta, S., Wiboonpongnse A., & Chaovanapoonphol, Y. (2007). Modeling Abstention of and Expenditure Shares on Alcohol and Tobacco in Thailand. ASIMMOD. Chiang Mai, Tailandia.

Tan, A., Yen, S., & Nayga, R. Jr. (2009a). Factors Affecting Alcohol Purchase Decisions and Expenditures: A Sample Selection Analysis by Ethnicity in Malaysia. Journal of Family Economic Issues, 30, 149-59.

Tan, A., Yen, S., & Nayga, R. Jr. (2009b). Rol of Education in Cigarette Smoking: An Analysis of Malaysian Household Survey Data. Asian Economic Journal, 23, 1, 1-17.

Unayama, T. (2006). The Engel Curve for Alcohol and The Rank of Demand System. Journal of Applied Econometrics, 21(7), 1019-2038.

Wilsnack, R., Wilsnack, S., & Obot, I. (2005). Why Study Gender, Alcohol and Culture? Alcohol, Gender and Drinking Problems. Perspective from Low and Middle Income Countries. Organización Mundial de la Salud, Ch. 11-23.

Wolfinger, N. (1998). The Effects of Parental Divorce on Adult Tabacco and Alcohol Consumption. Journal of Health and Social Behavior, 39, 3, 254-69.

Working, H. (1943). Statistical Laws of Family Expenditure. Journal of American Statistical Associations, 38, 43-56.

Yen, S. (2005). A Multivariate Sample-Selection Model: Estimating Cigarette and Alcohol demands with Zero Observation. American Journal of Agricultural Economics, 87, 453-66.

Yuan, Y., & Yen, Y. (2012). Alcohol Consumption by Individuals in the United States: A Sample Selection Approach. Applied Economics Letters, 19(14), 1353-58.

Zao, X., & Harris, H. (2004). Demand for Marijuana, Alcohol and Tobacco: Participation Levels of Consumption and Cross-Equation Correlations. The Economic Record, 80, 394-410.