Cigarette, Alcohol, and Drug Demand for Young Population
The purpose of this paper is to estimate demand elasticities of cigarette, alcohol, and cocaine for a sample of young American population. To deal with the inherent censoring issue in cigarette, alcohol, and drug consumption data, the paper applies ZINB, Tobit, and a two-step AIDS model. Findings in...
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| Format: | Article |
| Language: | English |
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Sprint Investify
2017-09-01
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| Series: | Expert Journal of Economics |
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| Online Access: | http://economics.expertjournals.com/23597704-508/ |
| _version_ | 1818447220172652544 |
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| author | Mohammed AL-MAHISH |
| author_facet | Mohammed AL-MAHISH |
| author_sort | Mohammed AL-MAHISH |
| collection | DOAJ |
| description | The purpose of this paper is to estimate demand elasticities of cigarette, alcohol, and cocaine for a sample of young American population. To deal with the inherent censoring issue in cigarette, alcohol, and drug consumption data, the paper applies ZINB, Tobit, and a two-step AIDS model. Findings indicate habit formation in young American consumption. Also, the results show that alcohol has an inelastic income elasticity. The ZINB model price elasticity, Marshallian own price elasticity, and Hicksian own price elasticity all agree that drug has a negative inelastic own price elasticity. This implies that price increased by drug traders increases their total revenue and slightly affects the quantity demanded of drug. |
| first_indexed | 2024-12-14T20:00:09Z |
| format | Article |
| id | doaj.art-c614586fb1f749cb8461aa1b720b8620 |
| institution | Directory Open Access Journal |
| issn | 2359-7704 |
| language | English |
| last_indexed | 2024-12-14T20:00:09Z |
| publishDate | 2017-09-01 |
| publisher | Sprint Investify |
| record_format | Article |
| series | Expert Journal of Economics |
| spelling | doaj.art-c614586fb1f749cb8461aa1b720b86202022-12-21T22:49:11ZengSprint InvestifyExpert Journal of Economics2359-77042017-09-01526270Cigarette, Alcohol, and Drug Demand for Young PopulationMohammed AL-MAHISH0King Faisal University, AlAhsa, Saudi ArabiaThe purpose of this paper is to estimate demand elasticities of cigarette, alcohol, and cocaine for a sample of young American population. To deal with the inherent censoring issue in cigarette, alcohol, and drug consumption data, the paper applies ZINB, Tobit, and a two-step AIDS model. Findings indicate habit formation in young American consumption. Also, the results show that alcohol has an inelastic income elasticity. The ZINB model price elasticity, Marshallian own price elasticity, and Hicksian own price elasticity all agree that drug has a negative inelastic own price elasticity. This implies that price increased by drug traders increases their total revenue and slightly affects the quantity demanded of drug.http://economics.expertjournals.com/23597704-508/Alcohol demandDrug demandCigarette demandDemandCensored Data |
| spellingShingle | Mohammed AL-MAHISH Cigarette, Alcohol, and Drug Demand for Young Population Expert Journal of Economics Alcohol demand Drug demand Cigarette demand Demand Censored Data |
| title | Cigarette, Alcohol, and Drug Demand for Young Population |
| title_full | Cigarette, Alcohol, and Drug Demand for Young Population |
| title_fullStr | Cigarette, Alcohol, and Drug Demand for Young Population |
| title_full_unstemmed | Cigarette, Alcohol, and Drug Demand for Young Population |
| title_short | Cigarette, Alcohol, and Drug Demand for Young Population |
| title_sort | cigarette alcohol and drug demand for young population |
| topic | Alcohol demand Drug demand Cigarette demand Demand Censored Data |
| url | http://economics.expertjournals.com/23597704-508/ |
| work_keys_str_mv | AT mohammedalmahish cigarettealcoholanddrugdemandforyoungpopulation |