Send to

Choose Destination
J Health Econ. 2014 Mar;34:96-103. doi: 10.1016/j.jhealeco.2013.12.006. Epub 2014 Jan 19.

Estimation of own and cross price elasticities of alcohol demand in the UK--A pseudo-panel approach using the Living Costs and Food Survey 2001-2009.

Author information

School of Health and Related Research (ScHARR), University of Sheffield, Sheffield, UK. Electronic address:
School of Health and Related Research (ScHARR), University of Sheffield, Sheffield, UK.
Department of Automatic Control and Systems Engineering, University of Sheffield, Sheffield, UK.


The estimation of price elasticities of alcohol demand is valuable for the appraisal of price-based policy interventions such as minimum unit pricing and taxation. This study applies a pseudo-panel approach to the cross-sectional Living Cost and Food Survey 2001/2-2009 to estimate the own- and cross-price elasticities of off- and on-trade beer, cider, wine, spirits and ready-to-drinks in the UK. A pseudo-panel with 72 subgroups defined by birth year, gender and socioeconomic status is constructed. Estimated own-price elasticities from the base case fixed effect models are all negative and mostly statically significant (p<0.05). Off-trade cider and beer are most elastic (-1.27 and -0.98) and off-trade spirits and on-trade ready-to-drinks are least elastic (-0.08 and -0.19). Estimated cross-price elasticities are smaller in magnitude with a mix of positive and negative signs. The results appear plausible and robust and could be used for appraising the estimated impact of price-based interventions in the UK.


Alcohol demand; Cross price elasticities; Elasticities; Pseudo-panel

[Indexed for MEDLINE]
Free PMC Article

Supplemental Content

Full text links

Icon for Elsevier Science Icon for PubMed Central
Loading ...
Support Center