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Demand for alcoholic drinks in the UK: application of cointegration and error correction mechanism


, : Demand for alcoholic drinks in the UK: application of cointegration and error correction mechanism. Discussion Paper Department of Economics, University of Lancaster ( EC10/94): 8 pp.

This paper estimates the demand for spirits, wine and beer in the UK using the cointegration and error correction models (ECM). The error correction term in the ECM is statistically different from zero suggesting that the extant studies on demand for alcoholic drinks in the UK have relied on equations which are misspecified, as they do not include the error correction term.

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