Alternative transformations in a class of limited dependent variable models: alcohol consumption by US women

Abstract

This study investigates alcohol consumption by women in the United States,using alternative specifications of the double-hurdle models which accommodate non-normal errors. The IHS double-hurdle model performs marginally better than the Box-Cox double-hurdle model but both models suggest very similar elasticities. The profile of a drinker includes white, black, smoker, homeowner, and residing in urban areas. Women who are older, pregnant or lactating, on special diet, and those with higher weight-height ratio are less likely to consume alcohol than others. Seasonal and regional variations are apparent. Smokers are more likely to consume alcohol and also consume more, while older women are less likely to drink and also drink less than others.