Determinants of household expenditures on alcohol

This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption, We also examine the effects of explanatory variables by calculating and decomposing the elasticities, Findings support the use of a more generalized error distribution, Income, region, education, and household demographics are among the significant determinants of alcohol expenditures.