Table 3.
Effects of Alternative Measures of Prices and Taxes on 2004 Beer Consumption
| Prices/Income | (a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (k) | (l) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Elasticity of Beer Consumption [η̂BEER defined in (2)] | ||||||||||||
| Beer Prices | −3.763 | −3.826 | −3.347 | −3.341 | −2.679 | −2.706 | −0.963 | −0.285 | −1.073 | 0.027 | 0.006 | 0.030 |
| (0.928) | (1.057) | (0.664) | (0.699) | (0.593) | (0.609) | (0.614) | (0.633) | (0.482) | (0.067) | (0.055) | (0.057) | |
| Spirits Prices | 0.125 | −0.013 | 0.004 | −0.504 | ||||||||
| (0.532) | (0.460) | (0.425) | (0.303) | |||||||||
| Wine Prices | −0.135 | −0.010 | 0.093 | −0.830 | ||||||||
| (0.491) | (0.430) | (0.359) | (0.428) | |||||||||
| Household | 0.087 | 0.087 | 0.095 | 0.095 | 0.082 | 0.082 | 0.092 | 0.092 | 0.099 | 0.088 | 0.095 | 0.083 |
| Income | (0.038) | (0.042) | (0.033) | (0.033) | (0.031) | (0.033) | (0.039) | (0.039) | (0.033) | (0.039) | (0.033) | (0.032) |
| Current Beer Drinker Elasticity [η̂BEER(1) defined in (3)] | ||||||||||||
| Beer Prices | −2.245 | −2.042 | −1.483 | −1.298 | −1.476 | −1.360 | −0.552 | −0.297 | −0.341 | −0.051 | −0.038 | −0.041 |
| (0.378) | (0.417) | (0.270) | (0.285) | (0.244) | (0.251) | (0.361) | (0.399) | (0.261) | (0.034) | (0.027) | (0.025) | |
| Spirits Prices | −0.300 | −0.463 | −0.453 | −0.097 | ||||||||
| (0.245) | (0.218) | (0.191) | (0.129) | |||||||||
| Wine Prices | 0.125 | 0.040 | 0.105 | −0.379 | ||||||||
| (0.167) | (0.190) | (0.161) | (0.287) | |||||||||
| Household | 0.140 | 0.140 | 0.140 | 0.139 | 0.128 | 0.128 | 0.142 | 0.142 | 0.140 | 0.138 | 0.138 | 0.127 |
| Income | (0.015) | (0.015) | (0.013) | (0.013) | (0.013) | (0.015) | (0.016) | (0.016) | (0.013) | (0.015) | (0.013) | (0.013) |
| Price Measure | ACCRA | ACCRA | ACCRA | ACCRA | ACCRA | ACCRA | UPC | UPC | UPC | Taxes | Taxes | Taxes |
| # of States | 25 | 25 | 35 | 35 | 44 | 44 | 25 | 25 | 35 | 25 | 35 | 44 |
| Other Prices | No | Yes | No | Yes | No | Yes | No | Yes | No | No | No | No |
Notes: Alcohol consumption data are from the second National Epidemiological Survey on Alcohol and Related Conditions (NESARC 2), conducted in 2004–05. Alcohol prices are for 2004, measured in ethanol-equivalents, and come from the American Chamber of Commerce Research Association (ACCRA), Uniform Product Code (UPC) scanner data provided by AC Nielsen, or from state beer taxes. Some estimates include the 25 states (AL, AZ, CA, FL, ID, IL, IA, LA, MD, MA, MI, MS, MO, NE, NV, NH, NM, NC, OH, OR, VA, WA, WV, WI, WY) for which beer, wine and spirits prices (ACCRA and UPC) were available. Others include 35 states in which ACCRA and UPC beer prices, as well as beer taxes, were available. These include the 25 states mentioned above plus (AR, CT, DC, GA, IN, KY, NY, SC, TN, TX). Models with 44 states include all of those where ACCRA beer, wine and spirits prices were available, except PA. (These models include DC and all states except CO, KS, ME, MN, OK, PA and UT). All samples are restricted to residents in metropolitan areas. Sizes of the analysis samples are 16,437, 23,743 and 24,983 for the samples that include 25, 35 and 44 states. The outcome examined is average daily ethanol consumption from beer during the last year. Alcohol prices are measured in terms of ethanol equivalents. Estimates for total and beer drinking participation elasticities are calculated using the procedures discussed in the text. The regression models also control for sex, marital status, age, race/ethnicity, family size, education, region, occupation and, where “other prices” are included, the natural logs of spirits and wine prices. Standard errors are in parentheses.