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Preference shifts in consumer demand for beer and wine

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Author Info
Butter, F. A. G. den (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
Delifotis, A.
Koning, R. H.

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Abstract

Preference shifts in the demand for beer and wine are empirically investigated for Germany, the Netherlands, France and Italy. With the rise in disposable income we see a shift from the demand for beer to the demand for wine notably in the Netherlands and somewhat less clearly in Germany, and a shift in opposite direction in France and Italy during the reference period 1973-1994. These shifts cannot be explained by observed changes in relative prices but should be attributed to autonomous changes in preferences. The first step of the empirical analysis is the estimation of a demand function for beer and wine taken together. Given total demand for beer and wine we specify a function for the relative demand for beer (or wine) which is derived from a utility function with shifting parameters. The estimation results indicate that by taking these preference shifts into account we are able to estimate price elasticities for the relative demand for beer and wine.

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Publisher Info
Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0052.

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Date of creation: 1997
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Handle: RePEc:dgr:vuarem:1997-52

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Web page: http://www.feweb.vu.nl

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Related research
Keywords: consumer demand; preference shifts; relative prices elasticities.;

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Nayga, Rodolfo M, Jr, 1996. "Sample Selectivity Models for Away from the Home Expenditures on Wine and Beer," Applied Economics, Taylor and Francis Journals, vol. 28(11), pages 1421-25, November. [Downloadable!] (restricted)
  2. Hogarty, Thomas F & Elzinga, Kenneth G, 1972. "The Demand for Beer," The Review of Economics and Statistics, MIT Press, vol. 54(2), pages 195-98, May. [Downloadable!] (restricted)
  3. Clements, Kenneth W & Johnson, Lester W, 1983. "The Demand for Beer, Wine, and Spirits: A Systemwide Analysis," Journal of Business, University of Chicago Press, vol. 56(3), pages 273-304, July. [Downloadable!] (restricted)
  4. Johnson, James A & Oksanen, Ernest H, 1974. "Socio-economic Determinants of the Consumption of Alcoholic Beverages," Applied Economics, Taylor and Francis Journals, vol. 6(4), pages 293-301, December.
  5. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
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This page was last updated on 2009-12-17.


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