IDEAS home Printed from https://ideas.repec.org/p/ags/aesc14/170487.html
   My bibliography  Save this paper

The Effects of Tax Policy on Alcoholic Beverage Trends and Alcohol Demand in Japan

Author

Listed:
  • Omura, Makiko

Abstract

This paper examines the evolution of alcoholic beverage sectors and the effects of tax policies on these sectors as well as the alcohol beverage demand systems in Japan utilising data from 1948 to 2011. In tax policy analyses, liquor tax policies are found to have differential effects on the production and consumption of different types of alcohol. Although sectoral growth and general economic performance in terms of final consumption expenditure per capita are found to be significant, with major positive effects, tax rates are found to have mixed effects, depending on the type of alcohol considered. The analyses suggest that preferential tax rates may be beneficial for boosting the sectoral performance of certain types of alcoholic beverages. The results, based on double-log and demand system equation estimations for five types of alcoholic beverages, suggest that all alcoholic beverages, except for shōchu, are normal goods with positive expenditure elasticities. Although the results suggest that shōchu may be the safest taxable subject in a Ramsey sense, the own-price elasticity estimates provide less coherent results depending on the model applied.

Suggested Citation

  • Omura, Makiko, 2014. "The Effects of Tax Policy on Alcoholic Beverage Trends and Alcohol Demand in Japan," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170487, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc14:170487
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/170487/files/Makiko_Omura_AESconfe_finaldraft.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
    2. Andreas Andrikopoulos & John Loizides, 2000. "The demand for home-produced and imported alcoholic beverages in Cyprus: the AIDS approach," Applied Economics, Taylor & Francis Journals, vol. 32(9), pages 1111-1119.
    3. Phlips, Louis, 1972. "A Dynamic Version of the Linear Expenditure Model," The Review of Economics and Statistics, MIT Press, vol. 54(4), pages 450-458, November.
    4. Ray, Ranjan, 1980. "Analysis of a Time Series of Household Expenditure Surveys for India," The Review of Economics and Statistics, MIT Press, vol. 62(4), pages 595-602, November.
    5. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    6. Chaloupka, Frank J & Saffer, Henry & Grossman, Michael, 1993. "Alcohol-Control Policies and Motor-Vehicle Fatalities," The Journal of Legal Studies, University of Chicago Press, vol. 22(1), pages 161-186, January.
    7. Manning, Willard G. & Blumberg, Linda & Moulton, Lawrence H., 1995. "The demand for alcohol: The differential response to price," Journal of Health Economics, Elsevier, vol. 14(2), pages 123-148, June.
    8. John Eakins & Liam Gallagher, 2003. "Dynamic almost ideal demand systems: an empirical analysis of alcohol expenditure in Ireland," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1025-1036.
    9. Michael Grossman, 1993. "Policy Watch: Alcohol and Cigarette Taxes," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 211-222, Fall.
    10. Brent D. Mast & Bruce L. Benson & David W. Rasmussen, 1999. "Beer Taxation and Alcohol-Related Traffic Fatalities," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 214-249, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Food Consumption/Nutrition/Food Safety; Political Economy; Research Methods/ Statistical Methods;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesc14:170487. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aesukea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.