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U.S. Sweetener Demand Analysis: A QUAIDS Model Application

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  • Lakkakula, Prithviraj
  • Schmitz, Andrew
  • Ripplinger, David

Abstract

We estimate the expenditure, price, and Engel parameters for the major U.S. caloric sweeteners (sugar, high-fructose corn syrup [HFCS], and glucose), for the 1975–2013 period using the quadratic almost ideal demand system (QUAIDS). The estimated parameters are then used to compute expenditure elasticities and both uncompensated and compensated price elasticities. We find that consumer expenditures are positively elastic for both sugar and HFCS but not for glucose. The own-price elasticity of demand for sugar is less elastic compared to those of HFCS and glucose. Our results will help design an effective U.S. sweetener tax policy.

Suggested Citation

  • Lakkakula, Prithviraj & Schmitz, Andrew & Ripplinger, David, 2016. "U.S. Sweetener Demand Analysis: A QUAIDS Model Application," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-16, September.
    • Handle: RePEc:ags:jlaare:246253
    DOI: 10.22004/ag.econ.246253
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    3. Sato, Hideyasu & 佐藤, 秀保, 2020. "Do Large-scale Point-of-sale Data Satisfy the Generalized Axiom of Revealed Preference in Aggregation Using Representative Price Indexes?: A Case Involving Processed Food and Beverages," RCESR Discussion Paper Series DP19-2, Research Center for Economic and Social Risks, Institute of Economic Research, Hitotsubashi University.
    4. Hovhannisyan, Vardges & Bastian, Christopher T., 2022. "Consumption of Low-Intensity and High-Intensity Sweeteners in the United States: Structure, Drivers, and Policy Implications," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322508, Agricultural and Applied Economics Association.
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    8. Prithviraj Lakkakula, 2018. "Potential Impact of Sweetener Input Tax on Public Health," Applied Health Economics and Health Policy, Springer, vol. 16(6), pages 749-751, December.

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