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Beer and the business cycle

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  • Donald Freeman

Abstract

The beer industry has traditionally been viewed as 'recession-proof': drinkers will have their beer notwithstanding the ecomomy's ups and downs. Few empirical studies have examined the veracity of the claim of beer's non-cyclicality and none have used monthly data. This paper uses an error-correction specification to test the sensitivity o mfonthly beer consumption to cyclical macro-economic variables over the period January 1955-December 1994. Strong support was found for the traditional view: beer is mostly immune to economic cycles.

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  • Donald Freeman, 2001. "Beer and the business cycle," Applied Economics Letters, Taylor & Francis Journals, vol. 8(1), pages 51-54.
    • Handle: RePEc:taf:apeclt:v:8:y:2001:i:1:p:51-54
    DOI: 10.1080/135048501750041295
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    References listed on IDEAS

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    6. Johnson, James A, et al, 1992. "Short-Run and Long-Run Elasticities for Canadian Consumption of Alcoholic Beverages: An Error-Correction Mechanism/Cointegration Approach," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 64-74, February.
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    Cited by:

    1. Don Freeman, 2009. "Beer in Good Times and Bad: A U.S. State-Level Analysis of Economic Conditions and Alcohol Consumption," Working Papers 0906, Sam Houston State University, Department of Economics and International Business.
    2. 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.
    3. Toro-Gonzalez, Daniel & McCluskey, Jill J. & Mittelhammer, Ron, 2014. "Beer Snobs Do Exist: Estimation of Beer Demand by Type," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), pages 1-14.
    4. Trey Malone & Jayson L. Lusk, 2019. "Releasing The Trap: A Method To Reduce Inattention Bias In Survey Data With Application To U.S. Beer Taxes," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 584-599, January.
    5. K. A. Al Mamun & H. K. Nath, 2005. "Export-led growth in Bangladesh: a time series analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 12(6), pages 361-364.

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