IDEAS home Printed from https://ideas.repec.org/p/ags/saea17/252739.html
   My bibliography  Save this paper

An assessment of the relationship between the high fructose corn syrup and the soft drink markets in the United States

Author

Listed:
  • Kennedy, P. Lynn
  • Garcia-Fuentes, Pablo A.

Abstract

This study analyzes the market of high fructose corn syrup (HFCS) in the United States and its linkages with soft drink market. For that, it develops a system of demand and supply equations for both the HFCS and soft drinks markets, which is estimated through Two Stage Least Squares methods. The results show that soft drinks are the main driver behind the growing demand for HFCS. In addition, negative news on HFCS (the association of HFCS consumption and obesity) has a negative effect on the growth of demand for soft drinks; however, per capita advertising on soft drinks has a positive effect on the growth of demand for soft drinks and more than offsets the effect of negative news. A vector error correction model is also estimated and reveals a long-term relationship between the per capita quantity consumed of soft drinks and HFCS. Lastly, consumption of soft drinks is found to Granger-cause consumption of HFCS.

Suggested Citation

  • Kennedy, P. Lynn & Garcia-Fuentes, Pablo A., 2017. "An assessment of the relationship between the high fructose corn syrup and the soft drink markets in the United States," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252739, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252739
    DOI: 10.22004/ag.econ.252739
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/252739/files/An%20assessment%20of%20the%20relationship%20between%20the%20high%20fructose%20corn%20syrup%20and%20the%20soft%20drink%20markets%20in%20the%20United%20States%20-SAEA01.17.2017.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.252739?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:saea17:252739. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

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

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.