Jon Nelson | Pennsylvania State University (original) (raw)

Papers by Jon Nelson

Social Science Research Network, Oct 29, 2004

Using panel data for a cross-section of countries, several previous studies estimate the effect o... more Using panel data for a cross-section of countries, several previous studies estimate the effect of advertising bans on cigarette consumption. These studies suffer from three problems: (1) structural change in cigarette demand functions; (2) endogeneity of advertising bans; and (3) nonstationarity of cigarette consumption data. Using annual data for 20 OECD countries, this study tests for unit roots. Growth rates of cigarette consumption (log differences) are stationary, but levels data are not. I estimate single-equation panel models for 1970-1995 and test formally for structural change. The tests and recursive coefficient estimates confirm a regime change beginning in 1985. Results for different time periods are reported for the effects of price, income, health warnings, country fixed-effects, and moderate and strong advertising bans. The study also considers the possibility of endogenous advertising bans. A public-choice model is estimated as a two-equation model of advertising legislation and cigarette demand. The adoption of advertising bans is modeled as a Poisson count regression, and fitted values for the number of banned media are used as instruments in the demand equation. The results in the paper fail to demonstrate that advertising bans reduce aggregate cigarette consumption. Empirical results in previous studies are not robust to use of stationary data; refinements in model specification; different time periods; and endogeneity of advertising bans. Due to a decline in smoking prevalence, especially among males, there was a change in the political climate in favor of stronger restrictions on cigarette advertising. Overall, advertising bans have had no effect on cigarette consumption, regardless of the time period considered or the severity of the bans.

Social Science Research Network, Jun 25, 2015

This study estimates a reduced-form regression model for mortality rates due to alcoholic liver d... more This study estimates a reduced-form regression model for mortality rates due to alcoholic liver diseases, with alcohol prices and income as explanatory variables. Panel data cover the years 2000-2010 for 21 member countries of the European Union. In the reduced form, prices affect mortality rates indirectly through the demand for alcohol, while income has potential direct and indirect effects. Country and time fixed effects are used to control for other factors that influence alcohol consumption and mortality. Special attention is paid to outliers in the data, and final results are based on the MS-estimator for robust regressions. Regression results for alcohol prices and income are sensitive to adjustments for stationary data and down-weighting of outliers and other influential data points. Final results indicate that alcohol prices do not affect mortality rates due to chronic liver diseases. Empirical results in the study do not lend support to broad price-based approaches to alcohol policy.

Classics in Transport Analysis, 2002

Thirteen empirical studies of airport noise and property values have been conducted using cross-s... more Thirteen empirical studies of airport noise and property values have been conducted using cross-sectional housing data from the 1960s and 1970s. These studies are based on the hedonic price model. In the present paper, the empirical results from these studies are summarized in the form of a noise depreciation sensitivity index, which is the ratio of the price of quiet to the price of an average or basic house and lot. The range of values for this index provides a means of evaluating the consistency of the studies and their results. The objective is to clarify the technique of benefit measurement that underlies property values studies and to survey the results systematically. Evaluation of the marginal implicit price function over the range of noise exposures and property values produces a locus of equilibrium outcomes that reflect both supply and demand forces. Benefit estimation can be conducted if the change in noise exposure levels is small and if partial equilibrium assumptions can be assumed to hold. Results from the thirteen studies indicate noise discounts in the range of 0.4 to 1.1% per decibel, with the higher values occurring in high-income areas. Although all of the studies show some error or bias, the weight of the evidence is consistent with the orthodox economic theory of land rents.

SAGE Open, Apr 1, 2015

This study estimates a reduced-form regression model for mortality rates due to alcoholic liver d... more This study estimates a reduced-form regression model for mortality rates due to alcoholic liver diseases, with alcohol prices and income as explanatory variables. Panel data cover the years 2000-2010 for 21 member countries of the European Union. In the reduced form, prices affect mortality rates indirectly through the demand for alcohol, while income has potential direct and indirect effects. Country and time fixed effects are used to control for other factors that influence alcohol consumption and mortality. Special attention is paid to outliers in the data, and final results are based on the MS-estimator for robust regressions. Regression results for alcohol prices and income are sensitive to adjustments for stationary data and downweighting of outliers and other influential data points. Final results indicate that alcohol prices do not affect mortality rates due to chronic liver diseases. Empirical results in the study do not lend support to broad price-based approaches to alcohol policy.

Social Science Research Network, 2020

This paper compares two methods for meta-analysis: fixed-effect models and random-effects models.... more This paper compares two methods for meta-analysis: fixed-effect models and random-effects models. Both models are applied to pass-through rates of excise taxes on alcohol beverages. Using a sample of estimates from 30 primary studies, weighted means are first reported for each method and compared against a fully-passed tax or unitary rate Dispersion and heterogeneity statistics are used to assess the performance of each method. Second, means and dispersion statistics are reported by subgroups for country source; beverage (beer, wine-spirits); and published status. Third, tests are conducted for publication selection bias using funnel plots and regression asymmetry tests. Fourth, three procedures are undertaken to reduce selection bias: trim-and-fill; cumulative meta-analysis; and meta-regressions. Based on a variety of tests and procedures, three conclusions are reached. First, a random-effects model is more appropriate for these data, reflecting diverse estimates of pass-through rates. Second, pass-through rates are approximately one regardless of beverage. Third, greater attention needs to be given to the choice of model for meta-analysis in economics.

Journal of Regional Science, Apr 1, 1971

Page 1. JOURNAL OF REGIONAL SCIENCE, VOL. li, NO. 1 , 19Yl AN INTERREGIONAL RECURSIVE PROGRAMS MO... more Page 1. JOURNAL OF REGIONAL SCIENCE, VOL. li, NO. 1 , 19Yl AN INTERREGIONAL RECURSIVE PROGRAMS MODEL OF PRODUCTION, INVESTMENT, AND TECHNOLOGICAL CHANGE* Jon P. Nelsont 1. INTRODUCTION ...

B E Journal of Economic Analysis & Policy, Dec 18, 2019

This paper conducts the first review and meta-analysis for estimates of alcohol excise tax pass-t... more This paper conducts the first review and meta-analysis for estimates of alcohol excise tax pass-through rates. A total of 30 empirical studies are examined. Several widely cited studies indicate substantial overshifting, suggesting imperfectly-competitive markets for alcohol. The narrative review provides insights for data coverage by country; econometric models; and results for under-or overshifting by beverage. Weighted-averages calculated for two samples show that beer taxes are overshifted and wine-spirits taxes are fully shifted. Metaregressions corrected for publication bias indicate, however, that full-shifting cannot be rejected for any beverage. Results are useful for alcohol tax policy and future research on optimal taxation and incidence.

Health Economics Review, Jul 24, 2013

Background: This paper contributes to the evidence-base on prices and alcohol use by presenting m... more Background: This paper contributes to the evidence-base on prices and alcohol use by presenting meta-analytic summaries of price and income elasticities for alcohol beverages. The analysis improves on previous meta-analyses by correcting for outliers and publication bias. Methods: Adjusting for outliers is important to avoid assigning too much weight to studies with very small standard errors or large effect sizes. Trimmed samples are used for this purpose. Correcting for publication bias is important to avoid giving too much weight to studies that reflect selection by investigators or others involved with publication processes. Cumulative meta-analysis is proposed as a method to avoid or reduce publication bias, resulting in more robust estimates. The literature search obtained 182 primary studies for aggregate alcohol consumption, which exceeds the database used in previous reviews and meta-analyses. Results: For individual beverages, corrected price elasticities are smaller (less elastic) by 28-29 percent compared with consensus averages frequently used for alcohol beverages. The average price and income elasticities are: beer,-0.30 and 0.50; wine,-0.45 and 1.00; and spirits,-0.55 and 1.00. For total alcohol, the price elasticity is-0.50 and the income elasticity is 0.60. Conclusions: These new results imply that attempts to reduce alcohol consumption through price or tax increases will be less effective or more costly than previously claimed.

Journal of Environmental Economics and Management, Jun 1, 1985

Two unresolved issues about airport noise-property value studies are addressed. The first issue c... more Two unresolved issues about airport noise-property value studies are addressed. The first issue concerns the comparability of empirical results from aggregate census data vs individual sales values, and the second issue concerns the homogeneity and stability of results from housing price studies over time and across markets. Hedonic price models from two sets of data for a residential area near the Atlanta International Airport are estimated at two points in time, 1979-1980 and 1970-1972. The available data yield similar estimates of the noise discount over time, and from the prices of individual house sales vs owner-appraised census block aggregates.

Social Science Research Network, 2019

This paper conducts the first comprehensive review and meta-analysis for estimates of alcohol tax... more This paper conducts the first comprehensive review and meta-analysis for estimates of alcohol tax pass-through rates. The review examines data coverage by country; econometric models; and results for under-or overshifting by beverage. Several primary studies indicate substantial overshifting of alcohol taxes. Median rates also suggest taxes are overshifted. Precision weightedaverages calculated for two samples show beer taxes are overshifted and wine-spirits taxes are fully shifted. Meta-regressions corrected for publication bias indicate, however, that full-shifting of alcohol taxes cannot be rejected for any beverage. Results are useful for alcohol tax policy and future research on tax incidence.

Journal of Economic Education, 1984

Economic Analysis and Policy, Dec 1, 2013

Higher alcohol prices and taxes are frequently proposed as a policy tool to deal with abusive con... more Higher alcohol prices and taxes are frequently proposed as a policy tool to deal with abusive consumption and adverse alcohol-related outcomes. Its success depends on price responsiveness of drinkers, especially heavy drinkers. This survey examines empirical studies of the price responsiveness of heavy-drinking adults. Additionally, the survey examines the relationship between alcohol prices and mortality due to liver cirrhosis. A review is conducted of 19 individual-based studies that examine price responses by heavy-drinking adults and nine studies of prices and cirrhosis mortality. The review finds only two studies of heavy drinking with a significant and substantial negative price response. For cirrhosis mortality, only two studies find a significant negative price response. Overall, the role of price and taxes as a significant deterrent to heavy drinking by adults is uncertain. 2 Lacking empirical evidence, Pogue and Sgontz (1989) simply assumed that abusive and nonabusive drinkers have equal price elasticities. The present paper provides the missing evidence on relative elasticities for adults. The potential welfare loss to moderate drinkers has been pointed out by a number of observers (Cnossen 2008,

Contemporary Economic Policy, Oct 1, 1999

Between 1985 and 1996, the number of personal bankruptcy cases filed annually in the United State... more Between 1985 and 1996, the number of personal bankruptcy cases filed annually in the United States rose from 341,000 to 1.1 million, and the rate of bankruptcies per 100,000 adults increased from 203 to 596. By state, bankruptcy rates vary from a low of 147 in Hawaii to a high of 956 in Tennessee. A controversial aspect of bankruptcy policy is the discharge of debts permitted under Chapter 7, in contrast to Chapter 13, where the debtor agrees to repay all or a portion of unsecured debt over a 3‐5‐year period. This paper examines empirically the determinants of the frequency with which individuals choose Chapter 13 relative to Chapter 7 (chapter choice). The panel data set is a cross section of states and the District of Columbia for the 8‐year period from fiscal year 1989 to 1996. The empirical model and policy application focus on the importance of several laws for bankruptcy decisions, and legal variables are included for each state's Chapter 7 homestead exemption, personal property exemptions, and garnishment laws. This study shows that both homestead exemption laws and garnishment laws are statistically significant for bankruptcy choices. Although the marginal effect of the homestead exemption is small, there is a large range under current laws, suggesting that changes in this exemption are important for bankruptcy policy. (JEL K1, K4, D2, D9)

Applied Economics, Dec 1, 1995

... EconPapers has moved to http://EconPapers.repec.org! Please update your bookmarks. Advertisin... more ... EconPapers has moved to http://EconPapers.repec.org! Please update your bookmarks. Advertising and US Alcoholic Beverage Demand: System-Wide Estimates. Jon P. Nelson () and John R Moran. Applied Economics, 1995, vol. 27, issue 12, pages 1225-36. ...

The Review of Economics and Statistics, Feb 1, 1980

Page 1. NOTES A COMPARISON OF ALTERNATIVE ECONOMETRIC MODELS OF IRON AND STEEL INVESTMENT BEHAVIO... more Page 1. NOTES A COMPARISON OF ALTERNATIVE ECONOMETRIC MODELS OF IRON AND STEEL INVESTMENT BEHAVIOR Jon P. Nelson, George R. Neumann, and Ronald M. Crandall* Numerous empirical studies have ...

Journal of Economic Behavior and Organization, Aug 1, 1995

This paper examines the effect of buyer size on price formation in an English auction of used sta... more This paper examines the effect of buyer size on price formation in an English auction of used state police cars. While open auctions generally favor competitive pricing, Bikhchandani (1988) develops a model of a second-price, common value auction in which bidders can use strategic behavior based on repeated sales to develop an aggressive reputation and, as a result, pay lower prices in equilibrium. The paper tests this hypothesis by examining sales of 340 used automobiles sold at 13 public auctions conditional on the volume of purchases made by the three largest buyers at the auctions. The empirical results show that the number of buyers plays a stronger role in price formation than does buyer size.

Journal of Wine Economics, Nov 20, 2013

This paper conducts a meta-analysis of price and income elasticities for wine and distilled spiri... more This paper conducts a meta-analysis of price and income elasticities for wine and distilled spirits, which correct for outliers and publication bias. The sample of wine elasticities is obtained from 104 primary studies, and the sample of spirits elasticities is obtained from 111 primary studies. Robust weighted-means and meta-regressions are reported that correct for outliers, heterogeneity, heteroskedasticity, dependence, and publication bias. Compared to unweighted averages previously reported in the literature, the analysis yields less-elastic demands for both price and income. Average price elasticities obtained using cumulative meta-analysis are −0.45 for wine and −0.55 for spirits. Average income elasticities are 1.0 for both beverages. Bias due to publication selectivity is important. Country-level differences also are noted for both wine and spirits. Policy implications are discussed for pricing and taxation of alcohol beverages.

European Journal of Health Economics, Apr 7, 2016

Natural experiments are an important alternative to observational and econometric studies. This p... more Natural experiments are an important alternative to observational and econometric studies. This paper provides a review of results from empirical studies of alcohol policy interventions in five countries: Denmark, Finland, Hong Kong, Sweden, and Switzerland. Major policy changes were removal of quotas on travelers' tax-free imports and reductions in alcohol taxes. A total of 29 primary articles are reviewed, which contain 35 sets of results for alcohol consumption by various subpopulations and time periods. For each country, the review summarizes and examines: (1) history of tax/quota policy interventions and price changes; (2) graphical trends for alcohol consumption and liver disease mortality; and (3) empirical results for policy effects on alcohol consumption and drinking patterns. We also compare cross-country results for three select outcomes-binge drinking, alcohol consumption by youth and young adults, and heavy consumption by older adults. Overall, we find a lack of consistent results for consumption both within- and across-countries, with a general finding that alcohol tax interventions had selective, rather than broad, impacts on subpopulations and drinking patterns. Policy implications of these findings are discussed.

Contributions in Economic Analysis & Policy, Aug 22, 2003

Using panel data for a cross-section of countries, several previous studies estimate the effect o... more Using panel data for a cross-section of countries, several previous studies estimate the effect of advertising bans on cigarette consumption. These studies suffer from three general problems: (1) structural change in cigarette demand functions; (2) endogeneity of advertising bans; and (3) non-stationarity of cigarette consumption data. Using annual data for 20 OECD countries, the present study tests for unit roots. Growth rates of cigarette consumption (log differences) are stationary, but levels data are not. I estimate singleequation panel models for 1970-1995 and test formally for structural change. The tests and recursive coefficient estimates confirm a regime change beginning in 1985. Results for different time periods are reported for the effects of price, income, health warnings, country fixed-effects, and moderate and strong advertising bans. The study also considers the possibility of endogenous advertising bans. A public-choice model is estimated as a two-equation model of advertising legislation and cigarette demand. The adoption of advertising bans is modeled as a Poisson count regression, and fitted values for the number of banned media are used as instruments in the demand equation. The results in the paper fail to demonstrate that advertising bans reduce aggregate cigarette consumption. Empirical results in previous studies are not robust to use of stationary data; refinements in model specification; different time periods; and endogeneity of advertising bans. Due to a decline in smoking prevalence, especially among males, there was a change in the political climate in favor of stronger restrictions on cigarette advertising. Overall, advertising bans have had no effect on cigarette consumption, regardless of the time period considered or the severity of the bans.

Social Science Research Network, Oct 29, 2004

Using panel data for a cross-section of countries, several previous studies estimate the effect o... more Using panel data for a cross-section of countries, several previous studies estimate the effect of advertising bans on cigarette consumption. These studies suffer from three problems: (1) structural change in cigarette demand functions; (2) endogeneity of advertising bans; and (3) nonstationarity of cigarette consumption data. Using annual data for 20 OECD countries, this study tests for unit roots. Growth rates of cigarette consumption (log differences) are stationary, but levels data are not. I estimate single-equation panel models for 1970-1995 and test formally for structural change. The tests and recursive coefficient estimates confirm a regime change beginning in 1985. Results for different time periods are reported for the effects of price, income, health warnings, country fixed-effects, and moderate and strong advertising bans. The study also considers the possibility of endogenous advertising bans. A public-choice model is estimated as a two-equation model of advertising legislation and cigarette demand. The adoption of advertising bans is modeled as a Poisson count regression, and fitted values for the number of banned media are used as instruments in the demand equation. The results in the paper fail to demonstrate that advertising bans reduce aggregate cigarette consumption. Empirical results in previous studies are not robust to use of stationary data; refinements in model specification; different time periods; and endogeneity of advertising bans. Due to a decline in smoking prevalence, especially among males, there was a change in the political climate in favor of stronger restrictions on cigarette advertising. Overall, advertising bans have had no effect on cigarette consumption, regardless of the time period considered or the severity of the bans.

Social Science Research Network, Jun 25, 2015

This study estimates a reduced-form regression model for mortality rates due to alcoholic liver d... more This study estimates a reduced-form regression model for mortality rates due to alcoholic liver diseases, with alcohol prices and income as explanatory variables. Panel data cover the years 2000-2010 for 21 member countries of the European Union. In the reduced form, prices affect mortality rates indirectly through the demand for alcohol, while income has potential direct and indirect effects. Country and time fixed effects are used to control for other factors that influence alcohol consumption and mortality. Special attention is paid to outliers in the data, and final results are based on the MS-estimator for robust regressions. Regression results for alcohol prices and income are sensitive to adjustments for stationary data and down-weighting of outliers and other influential data points. Final results indicate that alcohol prices do not affect mortality rates due to chronic liver diseases. Empirical results in the study do not lend support to broad price-based approaches to alcohol policy.

Classics in Transport Analysis, 2002

Thirteen empirical studies of airport noise and property values have been conducted using cross-s... more Thirteen empirical studies of airport noise and property values have been conducted using cross-sectional housing data from the 1960s and 1970s. These studies are based on the hedonic price model. In the present paper, the empirical results from these studies are summarized in the form of a noise depreciation sensitivity index, which is the ratio of the price of quiet to the price of an average or basic house and lot. The range of values for this index provides a means of evaluating the consistency of the studies and their results. The objective is to clarify the technique of benefit measurement that underlies property values studies and to survey the results systematically. Evaluation of the marginal implicit price function over the range of noise exposures and property values produces a locus of equilibrium outcomes that reflect both supply and demand forces. Benefit estimation can be conducted if the change in noise exposure levels is small and if partial equilibrium assumptions can be assumed to hold. Results from the thirteen studies indicate noise discounts in the range of 0.4 to 1.1% per decibel, with the higher values occurring in high-income areas. Although all of the studies show some error or bias, the weight of the evidence is consistent with the orthodox economic theory of land rents.

SAGE Open, Apr 1, 2015

This study estimates a reduced-form regression model for mortality rates due to alcoholic liver d... more This study estimates a reduced-form regression model for mortality rates due to alcoholic liver diseases, with alcohol prices and income as explanatory variables. Panel data cover the years 2000-2010 for 21 member countries of the European Union. In the reduced form, prices affect mortality rates indirectly through the demand for alcohol, while income has potential direct and indirect effects. Country and time fixed effects are used to control for other factors that influence alcohol consumption and mortality. Special attention is paid to outliers in the data, and final results are based on the MS-estimator for robust regressions. Regression results for alcohol prices and income are sensitive to adjustments for stationary data and downweighting of outliers and other influential data points. Final results indicate that alcohol prices do not affect mortality rates due to chronic liver diseases. Empirical results in the study do not lend support to broad price-based approaches to alcohol policy.

Social Science Research Network, 2020

This paper compares two methods for meta-analysis: fixed-effect models and random-effects models.... more This paper compares two methods for meta-analysis: fixed-effect models and random-effects models. Both models are applied to pass-through rates of excise taxes on alcohol beverages. Using a sample of estimates from 30 primary studies, weighted means are first reported for each method and compared against a fully-passed tax or unitary rate Dispersion and heterogeneity statistics are used to assess the performance of each method. Second, means and dispersion statistics are reported by subgroups for country source; beverage (beer, wine-spirits); and published status. Third, tests are conducted for publication selection bias using funnel plots and regression asymmetry tests. Fourth, three procedures are undertaken to reduce selection bias: trim-and-fill; cumulative meta-analysis; and meta-regressions. Based on a variety of tests and procedures, three conclusions are reached. First, a random-effects model is more appropriate for these data, reflecting diverse estimates of pass-through rates. Second, pass-through rates are approximately one regardless of beverage. Third, greater attention needs to be given to the choice of model for meta-analysis in economics.

Journal of Regional Science, Apr 1, 1971

Page 1. JOURNAL OF REGIONAL SCIENCE, VOL. li, NO. 1 , 19Yl AN INTERREGIONAL RECURSIVE PROGRAMS MO... more Page 1. JOURNAL OF REGIONAL SCIENCE, VOL. li, NO. 1 , 19Yl AN INTERREGIONAL RECURSIVE PROGRAMS MODEL OF PRODUCTION, INVESTMENT, AND TECHNOLOGICAL CHANGE* Jon P. Nelsont 1. INTRODUCTION ...

B E Journal of Economic Analysis & Policy, Dec 18, 2019

This paper conducts the first review and meta-analysis for estimates of alcohol excise tax pass-t... more This paper conducts the first review and meta-analysis for estimates of alcohol excise tax pass-through rates. A total of 30 empirical studies are examined. Several widely cited studies indicate substantial overshifting, suggesting imperfectly-competitive markets for alcohol. The narrative review provides insights for data coverage by country; econometric models; and results for under-or overshifting by beverage. Weighted-averages calculated for two samples show that beer taxes are overshifted and wine-spirits taxes are fully shifted. Metaregressions corrected for publication bias indicate, however, that full-shifting cannot be rejected for any beverage. Results are useful for alcohol tax policy and future research on optimal taxation and incidence.

Health Economics Review, Jul 24, 2013

Background: This paper contributes to the evidence-base on prices and alcohol use by presenting m... more Background: This paper contributes to the evidence-base on prices and alcohol use by presenting meta-analytic summaries of price and income elasticities for alcohol beverages. The analysis improves on previous meta-analyses by correcting for outliers and publication bias. Methods: Adjusting for outliers is important to avoid assigning too much weight to studies with very small standard errors or large effect sizes. Trimmed samples are used for this purpose. Correcting for publication bias is important to avoid giving too much weight to studies that reflect selection by investigators or others involved with publication processes. Cumulative meta-analysis is proposed as a method to avoid or reduce publication bias, resulting in more robust estimates. The literature search obtained 182 primary studies for aggregate alcohol consumption, which exceeds the database used in previous reviews and meta-analyses. Results: For individual beverages, corrected price elasticities are smaller (less elastic) by 28-29 percent compared with consensus averages frequently used for alcohol beverages. The average price and income elasticities are: beer,-0.30 and 0.50; wine,-0.45 and 1.00; and spirits,-0.55 and 1.00. For total alcohol, the price elasticity is-0.50 and the income elasticity is 0.60. Conclusions: These new results imply that attempts to reduce alcohol consumption through price or tax increases will be less effective or more costly than previously claimed.

Journal of Environmental Economics and Management, Jun 1, 1985

Two unresolved issues about airport noise-property value studies are addressed. The first issue c... more Two unresolved issues about airport noise-property value studies are addressed. The first issue concerns the comparability of empirical results from aggregate census data vs individual sales values, and the second issue concerns the homogeneity and stability of results from housing price studies over time and across markets. Hedonic price models from two sets of data for a residential area near the Atlanta International Airport are estimated at two points in time, 1979-1980 and 1970-1972. The available data yield similar estimates of the noise discount over time, and from the prices of individual house sales vs owner-appraised census block aggregates.

Social Science Research Network, 2019

This paper conducts the first comprehensive review and meta-analysis for estimates of alcohol tax... more This paper conducts the first comprehensive review and meta-analysis for estimates of alcohol tax pass-through rates. The review examines data coverage by country; econometric models; and results for under-or overshifting by beverage. Several primary studies indicate substantial overshifting of alcohol taxes. Median rates also suggest taxes are overshifted. Precision weightedaverages calculated for two samples show beer taxes are overshifted and wine-spirits taxes are fully shifted. Meta-regressions corrected for publication bias indicate, however, that full-shifting of alcohol taxes cannot be rejected for any beverage. Results are useful for alcohol tax policy and future research on tax incidence.

Journal of Economic Education, 1984

Economic Analysis and Policy, Dec 1, 2013

Higher alcohol prices and taxes are frequently proposed as a policy tool to deal with abusive con... more Higher alcohol prices and taxes are frequently proposed as a policy tool to deal with abusive consumption and adverse alcohol-related outcomes. Its success depends on price responsiveness of drinkers, especially heavy drinkers. This survey examines empirical studies of the price responsiveness of heavy-drinking adults. Additionally, the survey examines the relationship between alcohol prices and mortality due to liver cirrhosis. A review is conducted of 19 individual-based studies that examine price responses by heavy-drinking adults and nine studies of prices and cirrhosis mortality. The review finds only two studies of heavy drinking with a significant and substantial negative price response. For cirrhosis mortality, only two studies find a significant negative price response. Overall, the role of price and taxes as a significant deterrent to heavy drinking by adults is uncertain. 2 Lacking empirical evidence, Pogue and Sgontz (1989) simply assumed that abusive and nonabusive drinkers have equal price elasticities. The present paper provides the missing evidence on relative elasticities for adults. The potential welfare loss to moderate drinkers has been pointed out by a number of observers (Cnossen 2008,

Contemporary Economic Policy, Oct 1, 1999

Between 1985 and 1996, the number of personal bankruptcy cases filed annually in the United State... more Between 1985 and 1996, the number of personal bankruptcy cases filed annually in the United States rose from 341,000 to 1.1 million, and the rate of bankruptcies per 100,000 adults increased from 203 to 596. By state, bankruptcy rates vary from a low of 147 in Hawaii to a high of 956 in Tennessee. A controversial aspect of bankruptcy policy is the discharge of debts permitted under Chapter 7, in contrast to Chapter 13, where the debtor agrees to repay all or a portion of unsecured debt over a 3‐5‐year period. This paper examines empirically the determinants of the frequency with which individuals choose Chapter 13 relative to Chapter 7 (chapter choice). The panel data set is a cross section of states and the District of Columbia for the 8‐year period from fiscal year 1989 to 1996. The empirical model and policy application focus on the importance of several laws for bankruptcy decisions, and legal variables are included for each state's Chapter 7 homestead exemption, personal property exemptions, and garnishment laws. This study shows that both homestead exemption laws and garnishment laws are statistically significant for bankruptcy choices. Although the marginal effect of the homestead exemption is small, there is a large range under current laws, suggesting that changes in this exemption are important for bankruptcy policy. (JEL K1, K4, D2, D9)

Applied Economics, Dec 1, 1995

... EconPapers has moved to http://EconPapers.repec.org! Please update your bookmarks. Advertisin... more ... EconPapers has moved to http://EconPapers.repec.org! Please update your bookmarks. Advertising and US Alcoholic Beverage Demand: System-Wide Estimates. Jon P. Nelson () and John R Moran. Applied Economics, 1995, vol. 27, issue 12, pages 1225-36. ...

The Review of Economics and Statistics, Feb 1, 1980

Page 1. NOTES A COMPARISON OF ALTERNATIVE ECONOMETRIC MODELS OF IRON AND STEEL INVESTMENT BEHAVIO... more Page 1. NOTES A COMPARISON OF ALTERNATIVE ECONOMETRIC MODELS OF IRON AND STEEL INVESTMENT BEHAVIOR Jon P. Nelson, George R. Neumann, and Ronald M. Crandall* Numerous empirical studies have ...

Journal of Economic Behavior and Organization, Aug 1, 1995

This paper examines the effect of buyer size on price formation in an English auction of used sta... more This paper examines the effect of buyer size on price formation in an English auction of used state police cars. While open auctions generally favor competitive pricing, Bikhchandani (1988) develops a model of a second-price, common value auction in which bidders can use strategic behavior based on repeated sales to develop an aggressive reputation and, as a result, pay lower prices in equilibrium. The paper tests this hypothesis by examining sales of 340 used automobiles sold at 13 public auctions conditional on the volume of purchases made by the three largest buyers at the auctions. The empirical results show that the number of buyers plays a stronger role in price formation than does buyer size.

Journal of Wine Economics, Nov 20, 2013

This paper conducts a meta-analysis of price and income elasticities for wine and distilled spiri... more This paper conducts a meta-analysis of price and income elasticities for wine and distilled spirits, which correct for outliers and publication bias. The sample of wine elasticities is obtained from 104 primary studies, and the sample of spirits elasticities is obtained from 111 primary studies. Robust weighted-means and meta-regressions are reported that correct for outliers, heterogeneity, heteroskedasticity, dependence, and publication bias. Compared to unweighted averages previously reported in the literature, the analysis yields less-elastic demands for both price and income. Average price elasticities obtained using cumulative meta-analysis are −0.45 for wine and −0.55 for spirits. Average income elasticities are 1.0 for both beverages. Bias due to publication selectivity is important. Country-level differences also are noted for both wine and spirits. Policy implications are discussed for pricing and taxation of alcohol beverages.

European Journal of Health Economics, Apr 7, 2016

Natural experiments are an important alternative to observational and econometric studies. This p... more Natural experiments are an important alternative to observational and econometric studies. This paper provides a review of results from empirical studies of alcohol policy interventions in five countries: Denmark, Finland, Hong Kong, Sweden, and Switzerland. Major policy changes were removal of quotas on travelers' tax-free imports and reductions in alcohol taxes. A total of 29 primary articles are reviewed, which contain 35 sets of results for alcohol consumption by various subpopulations and time periods. For each country, the review summarizes and examines: (1) history of tax/quota policy interventions and price changes; (2) graphical trends for alcohol consumption and liver disease mortality; and (3) empirical results for policy effects on alcohol consumption and drinking patterns. We also compare cross-country results for three select outcomes-binge drinking, alcohol consumption by youth and young adults, and heavy consumption by older adults. Overall, we find a lack of consistent results for consumption both within- and across-countries, with a general finding that alcohol tax interventions had selective, rather than broad, impacts on subpopulations and drinking patterns. Policy implications of these findings are discussed.

Contributions in Economic Analysis & Policy, Aug 22, 2003

Using panel data for a cross-section of countries, several previous studies estimate the effect o... more Using panel data for a cross-section of countries, several previous studies estimate the effect of advertising bans on cigarette consumption. These studies suffer from three general problems: (1) structural change in cigarette demand functions; (2) endogeneity of advertising bans; and (3) non-stationarity of cigarette consumption data. Using annual data for 20 OECD countries, the present study tests for unit roots. Growth rates of cigarette consumption (log differences) are stationary, but levels data are not. I estimate singleequation panel models for 1970-1995 and test formally for structural change. The tests and recursive coefficient estimates confirm a regime change beginning in 1985. Results for different time periods are reported for the effects of price, income, health warnings, country fixed-effects, and moderate and strong advertising bans. The study also considers the possibility of endogenous advertising bans. A public-choice model is estimated as a two-equation model of advertising legislation and cigarette demand. The adoption of advertising bans is modeled as a Poisson count regression, and fitted values for the number of banned media are used as instruments in the demand equation. The results in the paper fail to demonstrate that advertising bans reduce aggregate cigarette consumption. Empirical results in previous studies are not robust to use of stationary data; refinements in model specification; different time periods; and endogeneity of advertising bans. Due to a decline in smoking prevalence, especially among males, there was a change in the political climate in favor of stronger restrictions on cigarette advertising. Overall, advertising bans have had no effect on cigarette consumption, regardless of the time period considered or the severity of the bans.