substitution Models

These models and simulations have been tagged “substitution”.

As the tax rate goes up, notionally, drinking has to go down. But as they do, the incentive to generate illicit liquor and consume it increases.

Taxing Alcohol - And illicit liquor

As the tax rate goes up, notionally, drinking has to go down. But as they do, the incentive to generate illicit liquor and consume it increases.

Clone of Taxing Alcohol - And illicit liquor

Most basic dynamic representation of the effect of the possibility of substitution in the price mechanism.

A description of this model can be found here:

Substitution