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An Almost Ideal Demand System for Alcoholic Beverages in British Columbia

Author

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  • Alley, Andrew G
  • Ferguson, Donald G
  • Stewart, Kenneth G

Abstract

An almost ideal demand system for alcoholic beverages in British Columbia is estimated based on five beverage categories. Estimates of the model unrestricted and restricted to satisfy homogeneity and symmetry are presented. The restrictions are tested: as is common in applied demand analysis a number of rejections are encountered, although within equation tests tend to support homogeneity. The rejections which are encountered are not mitigated by the inclusion of dynamic elements. The Slutsky matrix is used to examine the concavity of the expenditure function, which is found to be mildly violated. Marshallian and Hicksian own-, cross-price, and income elasticities are calculated and are found to be largely consistent with previous findings, although some noteworthy results are obtained.

Suggested Citation

  • Alley, Andrew G & Ferguson, Donald G & Stewart, Kenneth G, 1992. "An Almost Ideal Demand System for Alcoholic Beverages in British Columbia," Empirical Economics, Springer, vol. 17(3), pages 401-418.
    • Handle: RePEc:spr:empeco:v:17:y:1992:i:3:p:401-18
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    Citations

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    Cited by:

    1. Concetta CASTIGLIONE & Ladislava GROCHOVÁ & Davide INFANTE & Janna SMIRNOVA, 2011. "The demand for beer in presence of past consumption and advertising in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(12), pages 589-599.
    2. Lariviere, Eric & Larue, Bruno & Chalfant, Jim, 2000. "Modeling the demand for alcoholic beverages and advertising specifications," Agricultural Economics, Blackwell, vol. 22(2), pages 147-162, March.
    3. Bruno Larue & Alan Ker & Lorrie Mackinnon, 1991. "The demand for wine in ontario and the phasing-out of discriminatory mark-ups," Agribusiness, John Wiley & Sons, Ltd., vol. 7(5), pages 475-488.
    4. James Fogarty, 2010. "The Demand For Beer, Wine And Spirits: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 428-478, July.
    5. Diotallevi, Francesco, 2010. "L’analisi della domanda degli oli extravergine d’oliva in Italia Un’applicazione del modello A.I.D.S [The analysis of the demand for extra virgin olive oil in Italy An application of the AIDSmodel]," MPRA Paper 41469, University Library of Munich, Germany.
    6. Tomson Ogwang & Danny Cho, 2009. "Economic determinants of the consumption of alcoholic beverages in Canada: a panel data analysis," Empirical Economics, Springer, vol. 37(3), pages 599-613, December.
    7. Carvalho, Emanuel & Lian, Zeng, 2010. "The Impact of Goods and Services Tax on the Pattern of Canadian Consumer Spending and Saving," The Journal of Economic Asymmetries, Elsevier, vol. 7(1), pages 123-136.
    8. Baigorri, Bárbara & Ledesma, Ana, 2019. "Rentas de vivienda y suministros en el hogar: Selección del modelo microeconómico ideal para representar las preferencias del consumidor [Household income and supplies in the home: Selection of the," MPRA Paper 93265, University Library of Munich, Germany.
    9. Christopher Dobronyi & Christian Gouri'eroux, 2020. "Consumer Theory with Non-Parametric Taste Uncertainty and Individual Heterogeneity," Papers 2010.13937, arXiv.org, revised Jan 2021.
    10. García, Lucia, 2018. "Demand behaviour in Spain during the last three decades: What is the ideal microeconomic model to represent consumer preferences?," MPRA Paper 87937, University Library of Munich, Germany.

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