Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households
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.
| Main Authors: | , |
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| Format: | info:ar-repo/semantics/documento de conferencia biblioteca |
| Language: | eng |
| Published: |
International Association of Agricultural Economists
2018-07-28
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| Subjects: | Agricultural Policies, Food Policies, Consumer Economics, Consumer Behaviour, Economics, Price Elasticities, Beverages, Foods, Política Agrícola, Política Alimentaria, Economía del Consumidor, Comportamiento del Consumidor, Economía, Elasticidad de los Precios, Bebidas, Alimentos, Argentina, |
| Online Access: | http://hdl.handle.net/20.500.12123/8862 https://ageconsearch.umn.edu/record/277505 http://doi.org/10.22004/ag.econ.277505 |
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