Price and Tax Elasticity of Alcohol Consumption: Evidence from Seven Indian States
Gupta, S.; Roy Chowdhury, S.; Pohit, S.; Tullu, F. T.; Joshi, P.
Show abstract
In this paper, we develop a novel methodology for constructing price indices of India Made Foreign Liquor (IMFL), which account for incompatible state-level taxation structure and policies across seven states in India. We use this price index to compute price and tax elasticity of IMFL in the seven states. We find that a 1% increase in price leads to only a 0.057% decline in consumption while a 1% increase in tax reduces alcohol consumption by 0.14%. We extend our estimates to show that a 10% increase in taxes will lead to an 8.4% increase in tax revenue. Our results are the most updated estimates of alcohol consumption elasticities, which overcomes several challenges such as varying manufacturing costs across states and varying tax across types of products within states, which other papers do not.
Matching journals
The top 6 journals account for 50% of the predicted probability mass.
Similar papers in this journal
- Correlation between religiosity and family functioning among secondary school students in high-risk residing areas and factors associated with substance use 91%
- Generalized Linear Mixed Model Approach for Analyzing Water, Sanitation, and Hygiene Facilities in Bangladesh: Insights from BDHS 2022 Data 91%
- Modelling Alcohol Consumption Patterns to Enable Policy Impact Assessment 91%
Similar papers in this journal
- Prevalence and Factors Associated with Illicit Drug and High-Risk Alcohol Use among Adolescents Living in Urban Slums of Kampala, Uganda 90%
- How can we maximise the benefits of smoke-free prisons? Decision analytic model to predict potential impacts on public health 89%
- Behavioral changes before lockdown, and decreased retail and recreation mobility during lockdown, contributed most to the successful control of the COVID-19 epidemic in 35 Western countries 89%
Similar papers in this journal
- Epidemiology of alcohol use and alcohol use disorder among female sex workers in Mbeya City, Tanzania. 92%
- The landscape and level of alcohol policy enforcement in Tanzania 91%
- Assessing Compliance with Smoke-Free Laws in Purbakhola Rural Municipality, Nepal: A Cross-Sectional Observational Study 90%
Similar papers in this journal
- Understanding Purchasing Patterns of Alcoholic, Alcohol-Free, and Low-Alcohol Drinks: A Latent Profile Analysis 90%
- Age-based differences in quantity and frequency of consumption when screening for harmful alcohol use 89%
- Impact of health warning labels and calorie labels on selection and purchasing of alcoholic and non-alcoholic drinks: a randomised controlled trial 88%
Similar papers in this journal
"Similar papers" are the closest papers from that journal in the model's embedding space. They show what the match is built on, but the ranking comes mostly from a classifier over the whole training set, not from these examples alone.