 Elasticity of Demand for Sweetened and Unsweetened Drinks: The Case of Argentinian HouseholdsF. Colella and I.R. Pace Guerrero No 277505, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists Abstract: Argentina is the fourth highest consumer of sweetened drinks, and the first consumer of soda in the world. In this paper we estimate a quadratic almost ideal demand system (QUAIDS) to explore demand for a number of sweetened and unsweetened beverages in Argentina. We use two household surveys: the last one available, performed in 2012-2013, and the previous one, carried over in 2004-2005. We explore expenditure shares and own and cross price elasticities. These results can shed light on a discussion that was held in 2017 in Congress towards the design of a tax reform on sweet beverages that will affect consumers, farmers, and the retail and food industries. Our results support the notion that a tax applied to highly sweetened beverages will affect consumption: for every 1% increase in price there will be a 1.32% drop in quantity purchased. In addition,we find that for every 1% price increase in highly sweetened beverages there will be a 1.12% increase in the amount of dairy beverages purchased. Acknowledgement : Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277505 Access Statistics for this paper More papers in 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists Contact information at EDIRC. |
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