Price elasticities revisited: The effect of price changes caused by taxation on the amount of alcohol consumed

Q3 Economics, Econometrics and Finance Applied Econometrics Pub Date : 2023-01-01 DOI:10.22394/1993-7601-2023-69-28-47

M. Kolosnitsyna, Varvara Sukhanova

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Abstract

Price elasticity is an important indicator of alcohol consumption. The success of an alcohol policy largely depends on how sensitive the demand is to the price. The purpose of this paper is to determine the effect of vodka price changes on the amount of vodka and pure alcohol consumed by Russian citizens exploiting the variation caused by price regulations, and in particular, taxation. Demand for alcohol is sensitive to its price, as abundant research has shown. However, the price of alcohol, in turn, may depend on demand. To overcome the endogeneity, we used a sharp change in excise tax observed in Russia in 2011 to model the price of vodka using the regression kink design. Based on nationally representative households and individual survey data, we also used the Arellano–Bond method to take into account habit formation. Our results are close to those obtained in other countries but differ from price elasticity values calculated in some work based on Russian data. The results confirm the effectiveness of the tax policy in those years when it increased the real prices of alcohol.

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重新审视价格弹性:税收对酒精消费量造成的价格变化的影响

价格弹性是酒精消费的一个重要指标。酒精政策的成功在很大程度上取决于需求对价格的敏感程度。本文的目的是确定伏特加价格变化对伏特加和纯酒精消费量的影响，俄罗斯公民利用价格管制引起的变化，特别是税收。大量研究表明，对酒精的需求对价格很敏感。然而，反过来，酒精的价格可能取决于需求。为了克服内生性，我们使用了2011年在俄罗斯观察到的消费税的急剧变化，使用回归扭结设计来模拟伏特加的价格。基于具有全国代表性的家庭和个人调查数据，我们还使用了Arellano-Bond方法来考虑习惯形成。我们的结果与其他国家的结果接近，但与基于俄罗斯数据的某些工作计算的价格弹性值不同。结果证实了税收政策在提高酒精实际价格的那些年的有效性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Applied Econometrics Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： The Journal of Applied Econometrics is an international journal published bi-monthly, plus 1 additional issue (total 7 issues). It aims to publish articles of high quality dealing with the application of existing as well as new econometric techniques to a wide variety of problems in economics and related subjects, covering topics in measurement, estimation, testing, forecasting, and policy analysis. The emphasis is on the careful and rigorous application of econometric techniques and the appropriate interpretation of the results. The economic content of the articles is stressed. A special feature of the Journal is its emphasis on the replicability of results by other researchers. To achieve this aim, authors are expected to make available a complete set of the data used as well as any specialised computer programs employed through a readily accessible medium, preferably in a machine-readable form. The use of microcomputers in applied research and transferability of data is emphasised. The Journal also features occasional sections of short papers re-evaluating previously published papers. The intention of the Journal of Applied Econometrics is to provide an outlet for innovative, quantitative research in economics which cuts across areas of specialisation, involves transferable techniques, and is easily replicable by other researchers. Contributions that introduce statistical methods that are applicable to a variety of economic problems are actively encouraged. The Journal also aims to publish review and survey articles that make recent developments in the field of theoretical and applied econometrics more readily accessible to applied economists in general.