Bask, Mikael; Melkersson, Maria - Institutionen för Nationalekonomi, Umeå Universitet - 2001
. It is found that alcohol demand is quite well described by the rational addiction model while the same is not true for … cigarettes. The own-price elasticities are negative, and alcohol demand is more elastic than cigarette demand. The cross … simultaneous decisions, we estimate the demand for these goods as a system of equations. Alcohol demand is still positively …