This paper reports upon an econometric investigation, using aggregate times series data, of the influence of prices, income and advertising upon the demand for beer, spirits and wine, taken separately, in the UK. Income has a marked effect on the demand for these goods, and price elasticities are low. Advertising is estimated to have a weak effect on the demand for beer and spirits, but no effect on wine demand. The implications for policy are that tax revenue could be increased, and consumption reduced, quite significantly by raising the rates of duty, especially on spirits, but compulsory reductions in advertising would appear to be a relatively ineffective way of restraining alcohol consumption.
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Martyn Duffy (1981) studied this question.