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Preference shifts in consumer demand for beer and wine

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  • 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.

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.

Suggested Citation

  • Butter, F. A. G. den & Delifotis, A. & Koning, R. H., 1997. "Preference shifts in consumer demand for beer and wine," Serie Research Memoranda 0052, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1997-52
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    References listed on IDEAS

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    5. Pompelli, Gregory K & Heien, Dale, 1991. "Discrete/Continuous Consumer Demand Choices: An Application to the U.S. Domestic and Imported White Wine Markets," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(1), pages 117-130.
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    Cited by:

    1. Giraud-Héraud, Eric & Surry, Yves, 2001. "Les réponses de la recherche aux nouveaux enjeux de l’économie viti-vinicole," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 60, pages 1-5.
    2. Giraud-Héraud Eric & Yves Surry, 2001. "Les réponses de la recherche aux nouveaux enjeux de l’économie viti-vinicole," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 60, pages 5-24.
    3. Eric Giraud-Héraud & Yves Surry, 2001. "Les réponses de la recherche aux nouveaux enjeux de l’économie viti-vinicole," Post-Print hal-01200932, HAL.

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    More about this item

    Keywords

    consumer demand; preference shifts; relative prices elasticities.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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