Browsing by Author "Tuovila, Petri"

This thesis analyses regional differences in alcohol consumption behavior in Finland with respect to real price changes during 1995-2015. Goal of this thesis is to study if differences between regions exist or not. Data for aggregate regional consumption consisting of both restaurant, and retail alcohol consumption and real price index of alcohol used in this thesis is from THL. The approach to analyze differences between regions is firstly, to examine short term changes by price elasticity of demand, and secondly, to analyze correlations, cointegration relations and OLS regression for the full period under the review, and compare the results of each method. The results of empirical analysis indicate that there are differences between regional behavior in alcohol consumption. The results also indicate that in many cases regions in the vicinity of each other have similar behavioral pattern. Further, in some regions such as Lapland and Central Finland, the OLS model for real price index and alcohol consumption has considerably better fit than in other regions.