Table III.
Heterogeneity in price elasticity of alcohol demand
| Negative binomial | FMM component 1 | FMM component 2 | FMM prior probability of component 1 | Test of difference between components—p-value | |
|---|---|---|---|---|---|
| Log alcohol price | −0.402*** (0.152) |
−1.686*** (0.651) |
0.0131 (0.0863) |
0.0123 | |
| Age 61–70 | −0.249*** (0.0299) |
0.0551 (0.0981) |
−0.164*** (0.0392) |
0.178*** (0.0573) |
0.0229 |
| Age 71–80 | −0.586*** (0.0462) |
0.149 (0.130) |
−0.467*** (0.0495) |
0.356*** (0.102) |
0.000 |
| Age 81+ | −1.039*** (0.0432) |
−0.289 (0.179) |
−0.939*** (0.0737) |
0.310** (0.135) |
0.0002 |
| Height | 0.168 (0.308) |
0.720 (0.510) |
0.233 (0.242) |
−0.0146 (0.483) |
0.3081 |
| Years of education | 0.0432*** (0.00644) |
0.250*** (0.0315) |
−0.0672*** (0.00630) |
−0.124*** (0.0156) |
0.000 |
| Black | −0.351*** (0.0564) |
−2.367*** (0.638) |
−0.121* (0.0688) |
0.183 (0.125) |
0.0002 |
| Other race | −0.227*** (0.0847) |
−4.782 (11.06) |
−0.0100 (0.135) |
0.166 (0.220) |
0.6631 |
| Male | 0.902*** (0.0627) |
−0.00306 (0.127) |
0.448*** (0.0361) |
−0.850*** (0.0828) |
0.0010 |
| Constant | −0.618 (0.608) |
−2.407 (2.036) |
0.802** (0.404) |
2.739*** (0.720) |
|
| Observations | 65,002 | 65,002 | 65,002 | 65,002 | |
| Mean predicted y | 0.13 | 1.86 | |||
| Mean posterior probability | 0.728 | 0.272 |
Regressions also include census region of residence and year dummies.
Standard errors in parentheses; regressions are weighted, and robust standard errors are clustered at the state level.
*
p<0.1
**
p<0.05
***
p<0.01.