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The effect of a soft-drink tax in Mexico: a time series approach

Julio Arteaga (), Daniel Flores () and Edgar Luna ()

MPRA Paper from University Library of Munich, Germany

Abstract: We use a time series approach and industry data to estimate the effect on consumption of an excise tax on soft drinks imposed recently in Mexico. The tax caused a price increase of 12.8% and reduced per-capita consumption about 3.8%. This effect is small in comparison to the effects suggested by most studies that have estimated price elasticities using an almost-ideal-demand-system and household survey data.

Keywords: Soft drinks; Tax; Time series (search for similar items in EconPapers)
JEL-codes: H25 I12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2017-08-16
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