Objective To provide the first ever published estimates of the price and expenditure elasticities of demand for beer and wine in Vietnam and thereby contribute to policy initiatives aimed at reducing the excessive consumption of alcohol.
Methods We use a linear approximation of the Almost Ideal Demand System and data from the Vietnam Household Living Standards Survey for 2010, 2012 and 2014.
Results We find that the demand for beer and wine in Vietnam is price and expenditure inelastic with average price elasticities of −0.283 and −0.317 and average expenditure elasticities of 0.401 and 0.156, respectively. That is, we find that beer and wine consumption decline whenever their respective prices increase and their consumption increases whenever expenditure rises.
Conclusions The results of the study lend confidence to calls for increased taxation of alcoholic products on public health grounds in Vietnam.
- alcohol demand
- expenditure surveys
- price elasticity
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Contributors PNT did the analysis with the help of GC. NTTH, HR, LTT and PTHA helped with the writing of the manuscript.
Funding This work was supported by the International Development Research Centre grant number 107200-002.
Competing interests None declared.
Ethics approval This study did not require ethics approval as it uses the Vietnam Household Living Standards Survey which is a secondary dataset that is publically available.
Provenance and peer review Not commissioned; externally peer reviewed.
Data sharing statement The data contained in the article are publicly available from the General Statistics Office of Vietnam.
Patient consent for publication Not required.
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