Understanding parallel economy identifying the willingness to pay for bootleg alcohol in Ahmedabad city of the dry state- Gujarat

Abstract

Due to the ban on alcohol consumption in Ahmedabad, coupled with inadequate enforcement of the same law, an underground market for illegal alcohol has emerged. A major consumer group of this market comprises of graduate and post-graduate students in educational institutes of Ahmedabad. We aim to delve deeper into the consumption patterns and mindset of these individuals. We also aim to develop an understanding of what actually separates these consumers into three broad segments: 1) Non consumers and Non purchasers (Labelled “Boring at Parties”) 2) Consumers but non purchasers (Labelled “Free-riders”) 3) Consumers and Purchasers (Labelled “Driven Consumers”) We have collected data on roughly ten dimensions, starting from basic demographic details to consumption of alcohol and other legal and illegal narcotic substances. All the data has been analyzed using Probit and OLS statistical estimation models along with basic z-tests of significance.