The Interdependence of Cigarette and Liquor Demand

Posted: 24 Sep 2014

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Mathew J. Morey

Independent

Date Written: 1995

Abstract

This research makes at least two contributions to the literature focusing on demand for liquor and cigarettes. First, we establish empirically whether these goods are substitutes or complements in consumption. Second, results from our analysis permit answers to questions about whether states should consider setting or changing tax rates on cigarettes and liquor as a joint decision to maximize tax revenues.

Keywords: cigarettes, liquor, substitution, complementarity, United States

JEL Classification: D12

Suggested Citation

Goel, Rajeev K. and Morey, Mathew J., The Interdependence of Cigarette and Liquor Demand (1995). Southern Economic Journal, Vol. 62, No. 2, 1995. Available at SSRN: https://ssrn.com/abstract=2500432

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Mathew J. Morey

Independent ( email )

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