The sale of alcohol in Denmark: recent developments and dependencies on prices/taxes

TY - JOUR

T1 - The sale of alcohol in Denmark

T2 - recent developments and dependencies on prices/taxes

AU - laCour, Lisbeth

AU - Milhøj, Anders

PY - 2009

Y1 - 2009

N2 - How do prices affect the choice of types of alcohol in Denmark? We study the Danish sale of alcoholic beverages in a time series framework. First, we look at annual data from 1980 investigating the hypothesis of a fairly stable level of sales. We conclude stationarity of sales and we also find that the income elasticity of total sales has been zero. Second, we analyse the composition of the alcohol sale between beer, wine and spirits in a multivariate model conditional on the development in prices. For this analysis we use Johansen cointegration techniques. Again we test that income can be omitted from the model and we use the model to derive the effects on the composition of alcohol sales of three different sets of changesin the alcohol taxation.

AB - How do prices affect the choice of types of alcohol in Denmark? We study the Danish sale of alcoholic beverages in a time series framework. First, we look at annual data from 1980 investigating the hypothesis of a fairly stable level of sales. We conclude stationarity of sales and we also find that the income elasticity of total sales has been zero. Second, we analyse the composition of the alcohol sale between beer, wine and spirits in a multivariate model conditional on the development in prices. For this analysis we use Johansen cointegration techniques. Again we test that income can be omitted from the model and we use the model to derive the effects on the composition of alcohol sales of three different sets of changesin the alcohol taxation.

U2 - 10.1080/00036840601019174

DO - 10.1080/00036840601019174

M3 - Journal article

SN - 0003-6846

VL - 41

SP - 1089

EP - 1103

JO - Applied Economics

JF - Applied Economics

IS - 9

ER -