The demand on unregistered alcohol in Sweden 2001–2016

Sammanfattning: The main aim of this study was to estimate the demand for unregistered alcohol in Sweden 2001-2016 and to provide understanding on the determinants of demand for unregistered alcohol. The method used was a multiple linear OLS regression with fixed annual and regional effects. It was found that the relative share of the unregistered market A.correlates positively to prices on spirits; B.correlates negatively to Danish excise duties on wine; C.correlates positively to a net income increase; and, D.is dependent on the proximity to the Danish border. Conclusively, the unregistered market gives rise to various external effects; why it is recommended to review the price setting system of Systembolaget, alternatively, to harmonize European alcohol policies.