Ground, Marc2008-02-112008-02-112007-02Ground, M & Koch, SF 2007, 'Hurdle models of alcohol and tobacco expenditure in South African households', University of Pretoria, Department of Economics, Working paper series, no. 2007-03. [http://web.up.ac.za/default.asp?ipkCategoryID=736&sub=1&parentid=677&subid=729&ipklookid=3]http://hdl.handle.net/2263/4407Estimates of participation or expenditure elasticities depend upon the assumptions made regarding the observation of zero expenditure at the household level. This research examines two single-hurdle models across two commodities for which nearly two-thirds of the observations are zero. The research shows that one hurdle model consistently outperforms the other, and does so for intuitively appealing reasons.416306 bytesapplication/pdfenUniversity of Pretoria, Department of EconomicsAlcohol expenditureTobacco expenditureSouth African householdsHurdle modelDrinking of alcoholic beverages -- Economic aspects -- South AfricaTobacco use -- Economic aspects -- South AfricaConsumption (Economics) -- South AfricaWorking Paper