Ground, MarcKoch, Steven F.2008-05-212008-05-212008-03Ground, M & Koch, SF 2008, 'Hurdle models of alcohol and tobacco expenditure in South African households', The South African Journal of Economics, vol. 76, no. 1, pp. 132-143. [http://www.blackwellpublishing.com/journal.asp?ref=0038-2280&site=2]0038-228010.1111/j.1813-6982.2008.00156.xhttp://hdl.handle.net/2263/5404Estimates 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.1049172 bytesapplication/pdfenBlackwell. The definitive version is available at www.blackwell-synergy.com.Hurdle modelHausman-type testAlcohol expenditureTobacco expenditureSouth African householdsDrinking of alcoholic beverages -- Economic aspects -- South AfricaTobacco use -- Economic aspects -- South AfricaConsumption (Economics) -- South AfricaPostprint Article