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Beer and the Business Cycle

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Author Info
Freeman, Donald G

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Abstract

The beer industry has traditionally been viewed as "recession-proof": drinkers will have their beer notwithstanding the economy's ups and downs. Few empirical studies have examined the veracity of the claim of beer's non-cyclicality and none have used monthly data. This paper uses an error-correction specification to test the sensitivity of monthly beer consumption to cyclical macro-economic variables over the period January 1955-December 1994. Strong support was found for the traditional view: beer is mostly immune to economic cycles. Copyright 2001 by Taylor and Francis Group

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 8 (2001)
Issue (Month): 1 (January)
Pages: 51-54
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Handle: RePEc:taf:apeclt:v:8:y:2001:i:1:p:51-54

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  1. Don Freeman, . "Beer in Good Times and Bad: A U.S. State-Level Analysis of Economic Conditions and Alcohol Consumption," Working Papers 0906, Sam Houston State University, Department of Economics and International Business. [Downloadable!]
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This page was last updated on 2009-12-5.


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