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An Almost Ideal Demand System for Alcoholic Beverages in British Columbia

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Author Info

  • Alley, Andrew G
  • Ferguson, Donald G
  • Stewart, Kenneth G

Abstract

An almost ideal demand system for alcoholic beverages in British Columbia is estimated based on five beverage categories. Estimates of the model unrestricted and restricted to satisfy homogeneity and symmetry are presented. The restrictions are tested: as is common in applied demand analysis a number of rejections are encountered, although within equation tests tend to support homogeneity. The rejections which are encountered are not mitigated by the inclusion of dynamic elements. The Slutsky matrix is used to examine the concavity of the expenditure function, which is found to be mildly violated. Marshallian and Hicksian own-, cross-price, and income elasticities are calculated and are found to be largely consistent with previous findings, although some noteworthy results are obtained.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 17 (1992)
Issue (Month): 3 ()
Pages: 401-18

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Handle: RePEc:spr:empeco:v:17:y:1992:i:3:p:401-18

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Cited by:
  1. Tomson Ogwang & Danny Cho, 2009. "Economic determinants of the consumption of alcoholic beverages in Canada: a panel data analysis," Empirical Economics, Springer, vol. 37(3), pages 599-613, December.
  2. Bruno Larue & Alan Ker & Lorrie Mackinnon, 1991. "The demand for wine in ontario and the phasing-out of discriminatory mark-ups," Agribusiness, John Wiley & Sons, Ltd., vol. 7(5), pages 475-488.
  3. Lariviere, Eric & Larue, Bruno & Chalfant, Jim, 2000. "Modeling the demand for alcoholic beverages and advertising specifications," Agricultural Economics, Blackwell, vol. 22(2), pages 147-162, March.
  4. Diotallevi, Francesco, 2010. "L’analisi della domanda degli oli extravergine d’oliva in Italia Un’applicazione del modello A.I.D.S
    [The analysis of the demand for extra virgin olive oil in Italy An application of the AIDS
    ," MPRA Paper 41469, University Library of Munich, Germany.
  5. Lariviere, Eric & Larue, Bruno & Chalfant, Jim, 2000. "Modeling the demand for alcoholic beverages and advertising specifications," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 22(2), March.

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