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Demand for Non-Alcoholic Beverages: Evidence From The ACNielsen Home Scan Panel

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  • Pofahl, Geoffrey M.
  • Capps, Oral, Jr.
  • Clauson, Annette L.
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    Abstract

    Using the ACNielsen HomeScan Panel over the period 1998 to 2001 as the source of data, we entertain various demand systems, namely, the LA/AIDS, the AIDS, and the QUAIDS to investigate the demand for eight non-alcoholic beverages. Own-price, cross-price, and expenditure elasticities are obtained by year and by demand system for milk, bottled water, carbonated soft drinks, powdered soft drinks, coffee, tea, fruit juices and drinks, and isotonics. Emphasis is placed on the magnitude of price sensitivity of households toward non-alcoholic beverages as well as on substitution and complementary patterns. This work provides a more current and more thorough analysis associated with the non-alcoholic beverage industry than previously reported in the literature.

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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19441.

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    Date of creation: 2005
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    Handle: RePEc:ags:aaea05:19441

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    Keywords: Demand and Price Analysis;

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    1. Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April.
    2. Avery, Robert B & Hansen, Lars Peter & Hotz, V Joseph, 1983. "Multiperiod Probit Models and Orthogonality Condition Estimation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(1), pages 21-35, February.
    3. Keane, Michael, 1993. "Simulation estimation for panel data models with limited dependent variables," MPRA Paper 53029, University Library of Munich, Germany.
    4. Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
    5. Maynard, Leigh J. & Liu, Deyu, 1999. "Fragility In Dairy Product Demand Analysis," 1999 Annual meeting, August 8-11, Nashville, TN 21679, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-42, September.
    7. Chihwa Kao & Lung-fei Lee & Mark M. Pitt, 2000. "Simulated Maximum Likelihood Estimation of the Linear Expenditure System with Binding Non-Negativity Constraints," CEMA Working Papers 50, China Economics and Management Academy, Central University of Finance and Economics, revised Apr 2001.
    8. Steven T. Yen & Biing-Hwan Lin & David M. Smallwood, 2003. "Quasi- and Simulated-Likelihood Approaches to Censored Demand Systems: Food Consumption by Food Stamp Recipients in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 458-478.
    9. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
    10. Federico Perali & Jean-Paul Chavas, 2000. "Estimation of Censored Demand Equations from Large Cross-Section Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1022-1037.
    11. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    12. Gould, Brian W. & Cox, Thomas L. & Perali, Carlo Federico, 1990. "The Demand For Fluid Milk Products In The U.S.: A Demand Systems Approach," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(01), July.
    13. Schmit, Todd M. & Chung, Chanjin & Dong, Diansheng & Kaiser, Harry M. & Gould, Brian W., 2001. "Identifying the Extensive and Intensive Effects of Generic Advertising on the Household Demand for Fluid Milk and Cheese," Research Bulletins 122642, Cornell University, Department of Applied Economics and Management.
    14. Ueda, Takeshi & Frechette, Darren L., 2002. "Have Milk Fat Preferences Shifted? Structural Analysis of New York Milk Consumption," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), April.
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    Cited by:
    1. Mutuc, Maria Erlinda M. & Pan, Suwen & Rejesus, Roderick M., 2006. "Household Vegetable Demand in the Philippines: Is There an Urban-Rural Divide?," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35483, Southern Agricultural Economics Association.
    2. Pan, Suwen & Jensen, Helen H., 2008. "Does the Food Stamp Program Affect Food Security Status and the Composition of Food Expenditures?," Staff General Research Papers 12896, Iowa State University, Department of Economics.
    3. Lin, Biing-Hwan & Smith, Travis A. & Lee, Jonq-Ying, 2010. "Effects of Taxing Sugar-Sweetened Beverage and Subsidizing Milk: Beverage Consumption, Nutrition, and Obesity among US Children," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116448, European Association of Agricultural Economists & Agricultural and Applied Economics Association.

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