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Book/Printed Material Risk tolerance and alcohol demand among adults and older adults

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Title

  • Risk tolerance and alcohol demand among adults and older adults

Summary

  • "This study has two primary goals. These are the examination of the effect of risk tolerance on individuals' demand for alcohol and second, the examination of the demand for alcohol by older adults over the age of 55. The data sets employed are multiple waves from the Panel Study of Income Dynamics (PSID) and the Health and Retirement Study (HRS). While risk tolerance can impact the level of alcohol consumption, it may also affect the sensitivity of demand to prices. There are parallels between the economist's and the psychologist's concept of risk tolerance. Research on attitudes towards risk by psychologists is part of a larger theoretical and empirical literature on personality traits. Psychologists have found risk tolerance to be an important determinant of alcohol consumption. The empirical results indicate that risk aversion has a significant negative effect on alcohol consumption, with the prevalence and consumption among risk-tolerant individuals being six to eight percent higher. Furthermore, the tax elasticity is similar across both risk-averse and risk-tolerant individuals. This suggests that tax policies may be effective in deterring alcohol consumption even among those who have a higher propensity for alcohol use. The significance of research on alcohol demand by individuals ages 55 and older is highlighted by the increased potential for alcohol-related adverse consequences among this demographic group. Comparing younger adults (ages 21-54) with older adults, responses to taxes and prices are higher among the older sub-population. The tax elasticity is estimated at -0.05 for younger adults, compared to -0.20 for older adults"--National Bureau of Economic Research web site.

Names

  • Dave, Dhaval
  • Saffer, Henry
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2007.

Notes

  • -  Title from PDF file as viewed on 10/22/2007.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2007616613

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Dave, Dhaval, Henry Saffer, and National Bureau Of Economic Research. Risk Tolerance and Alcohol Demand Among Adults and Older Adults. Cambridge, MA: National Bureau of Economic Research, 2007. Pdf. https://aj.sunback.homes/item/2007616613/.

APA citation style:

Dave, D., Saffer, H. & National Bureau Of Economic Research. (2007) Risk Tolerance and Alcohol Demand Among Adults and Older Adults. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2007616613/.

MLA citation style:

Dave, Dhaval, Henry Saffer, and National Bureau Of Economic Research. Risk Tolerance and Alcohol Demand Among Adults and Older Adults. Cambridge, MA: National Bureau of Economic Research, 2007. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2007616613/>.