An econometric analysis of the total demand for alcoholic beverages in Finland, 1960 to 1980

The subject considered in this paper is the building of an econometric model of the demand for alcoholic beverages in Finland. The aim is to develop a model which satisfies various theoretical, statistical and prognostic criteria and which is easy to interpret. Comparisons are made with the models made for the UK by McGuinness, Walsh and Duffy and attention is drawn to their shortcomings. The final model is a semilogarithmic model in a difference form which has good prognostic properties.