Citation

Krüger NA, Svensson M. Appl. Econ. Lett. 2008; 17(6): 543-546.

Copyright

(Copyright © 2008, Informa - Taylor and Francis Group)

DOI

10.1080/13504850802167215

PMID

unavailable

Abstract

This article studies the relationship between the business cycle and alcohol sales in Sweden using a data set for the years 1861?2000. Using wavelet-based band-pass filtering, it is found that there is a pro-cyclical relationship, i.e. alcohol sales increases in short-term economic upturns. Using moving window techniques, we see that the pro-cyclical relationship holds over the entire time period. We also find that alcohol sales are a long-memory process with nonstationary behaviour, i.e. a shock in alcohol sales has persistent effects.