Rational Addiction Evidence From Carbonated Soft Drinks
AbstractThis paper applies the Becker-Murphy (1988) theory of rational addiction to the case of carbonated soft drinks, using a time-varying parameter model and scanner data from 46 U.S. cities. Empirical results provide strong evidence that carbonated soft drinks are rationally addictive, thus opening the door to taxation and regulation. Taking rational addition into account, estimated demand elasticities are much lower than previous estimates using scanner data.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51620.
Date of creation: 2009
Date of revision:
rational addiction; carbonated soft drinks; time-varying parameter model; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety;
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