Factors affecting alcohol purchase decisions and expenditures: A sample selection analysis by ethnicity in Malaysia

Andrew K.G. Tan, Steven T. Yen, Rodolfo M. Nayga

    Research output: Contribution to journalArticlepeer-review

    11 Citations (Scopus)

    Abstract

    Heckman's sample selection model was applied to data from the Malaysian Household Expenditure Survey 2004/2005 to examine the factors influencing the likelihood of purchasing and the amount spent on alcohol in Malaysia. Results of the marginal effects suggest that while socio-demographic factors are important determinants of household purchase decisions and expenditure levels on alcohol in Malaysia, the effects vary across ethnic groups. Specifically, although education had a significant but modest impact in reducing the probability of alcohol purchases and expenditure levels among ethnic Chinese households, this effect was not evident among the ethnic Indians and other races. While increasing household size lowered the likelihood of purchasing alcohol and its expenditure levels for all ethnic groups, the reinforcing effects of both income and gender were relevant only for ethnic Chinese and Indian households. Last, urban Indian households were less likely to purchase alcohol and spend less compared to rural Indian households.

    Original languageEnglish
    Pages (from-to)149-159
    Number of pages11
    JournalJournal of Family and Economic Issues
    Volume30
    Issue number2
    DOIs
    Publication statusPublished - 2009 Jun

    Bibliographical note

    Funding Information:
    Acknowledgement Research support from the Universiti Sains Malaysia short-term grant (304/PSOSIAL/637038) is acknowledged.

    Keywords

    • Alcohol expenditures
    • Malaysia
    • Purchase decisions
    • Sample selection model
    • Socio-demographics

    ASJC Scopus subject areas

    • Social Psychology
    • Economics and Econometrics

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