Advertising and alcohol demand in the UK: further results

E. Antony Selvanathan
Griffith University, Nathan, Queensland, Australia


Johnson (1985) used the system-wide approach to present an interesting analysis of the effects of advertising on the demand for alcoholic beverages in the United Kingdom for the period 1955–75. He proposed some extensions of the usual differential demand equations and used them for estimation. Several articles have appeared in the last three years that analyse the demand for alcoholic beverages in the UK, e.g., Clements & Selvanathan (1988), Clements et al. (1985), Duffy (1987) and Selvanathan (1987b, 1988).

Table 9.1 presents the estimates of marginal share of alcohol, income flexibility and income elasticity of alcohol reported by some of the above studies.