Beers, wines and spirits differ in price, alcohol content, colour, taste and smell. These affect market demand. This paper gives an overview of consumption patterns of some broadly defined alcohol items in Australia, using data from a major household expenditure survey. Total expenditure elasticities for various alcohol items have been estimated from a new Engel function which can be called the double semi-log Engel function. Beer had the lowest elasticity, whereas the values for wine and spirits were much higher, placing them in the 'luxury' category. The percentage changes in demand due to changes in total expenditures and total expenditure inequalities were also calculated. It showed that the per capita changes in demand for beer and wine were inaccurate unless income distribution was considered. This technique can also be used to determine the level of consumption demand for various alcohol items.
The demand for alcohol in Australia. Publishing Authors By Initials
