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Results for “price elasticity of demand”

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PubMed2026

Simulating the effects of an alcohol minimum unit price policy on distilled spirits sales in 28 states of the USA.

BACKGROUND AND AIMS: Excessive alcohol use is a leading preventable chronic disease risk factor. Alcohol minimum unit pricing (MUP) policies are not used in the United States despite evidence of associations with reduced drinking and alcohol-related harms. To inform potential population-level chronic disease prevention strategies, we estimated effects of various hypothetical MUPs on alcohol sales. METHOD: Simulation based on observational time-series data. We used weekly off-premises product-specific alcohol retail sales and prices in 28 states of the United States for November 2022-November 2023 from NielsenIQ to estimate the own-price elasticity of spirits and cross-price elasticities of wine, beer and ready-to-drinks with respect to spirits. Using estimated elasticities, we simulated changes in total alcohol sales associated with hypothetical spirits MUPs ranging from $0.10 to $1.10 per standard drink (0.6 fluid ounces of alcohol). RESULTS: A hypothetical MUP of $0.80 per standard drink on spirits yielded the largest estimated decrease in alcohol sales (-1.7%) and would affect 5374 of 26 249 spirits products. To reach the $0.80 MUP, the sales-weighted average price increase among affected products was $0.24 per drink. CONCLUSIONS: Minimum unit pricing policies on distilled spirits in the United States could shift purchasing behavior and help reduce alcohol-related harms.

alcohol policy↗

PubMed1979

Pricing, demanders, and the supply of health care.

This paper is divided into three substantive sections. In the first section the conventional neoclassical paradigm is augmented by consideration of the agency relationship in which the physician is considered not only as the agent who controls the supply of health care, but also as the decision maker who articulates demand because patients forego this role and rely on "expert" advice. The next section is concerned with the effects of pricing on consumer demand and draws on the available empirical evidence to present estimates of price elasticity, cross elasticity, and other characteristics of the choice process. This analysis is completed by integrating the agency relationship into the discussion and arguing that if the policy objectives are expenditure containment and greater efficiency in resource utilization, the price mechanism should be used to affect the behavior of the primary demander and the supplier: the physician. In the final section the implications of this analysis are discussed in the contexts of two competing perspectives: the liberal market perspective and the collective "needology" perspective, and an attempt is made to distinguish some of the characteristics of the two views of the world.

Canada↗

PubMed1979

On the analysis of ambulatory utilization: an investigation of the roles of need, access and price as predictors of illness and preventive visits.

After separating ambulatory visits into those made in connection with illness or injury and preventive visits, the utilization patterns of a sample of families and individuals are analyzed. Need, in terms of perceived health status and the numbers of acute and chronic conditions, price, and access are found to be the best predictors of visit rates, but their roles in illness and preventive visit rates are different. The methodologically relevant findings indicate that individual self-reports and independent individual observations are required to identify relationships hidden by family member data, such as that between hospital episodes and ambulatory visits. The substantive findings indicate a substitutive relationship between illness and preventive visits, lend further evidence for relatively low price elasticity for illness visits and show that membership in a closed panel health maintenance organization increases preventive visit rate while price has little or no effect on it. The tentative policy implication--that it is not so much price as the characteristics of the usual source of care which appear to determine preventive services utilization--is discussed in the context of potential biases inherent in the sample.

Ambulatory Care↗