An Evaluation of the Soda Tax with Multivariate Nonparametric Regressions

Eric Belasco (), Sujit K. Ghosh and Benaissa Chidmi ()

No 61329, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: This research extends past work by Shonkwiler and Yen (1999) by allowing for distributional flexibility and nonlinear responses in the form of established semiparametric and nonparametric regressions. The proposed models are shown to outperform the parametric version typically used in demand analysis to characterize a system of censored equations in terms of model fit and prediction power. Using the developed models, we derive elasticities associated with different individual-specific scenarios with regard to the recently proposed “penny-an-ounce” tax on soft drinks sweetened with sugar.

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Pages: 24
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61329

DOI: 10.22004/ag.econ.61329

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