Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households
Argentina is the fourth highest consumer of sweetened drinks, and the first consumer of soda in the world. In this paper we estimate a quadratic almost ideal demand system (QUAIDS) to explore demand for a number of sweetened and unsweetened beverages in Argentina. We use two household surveys: the l...
| Autores principales: | , |
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| Formato: | Conferencia |
| Lenguaje: | Inglés |
| Publicado: |
International Association of Agricultural Economists
2021
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| Materias: | |
| Acceso en línea: | http://hdl.handle.net/20.500.12123/8862 https://ageconsearch.umn.edu/record/277505 http://doi.org/10.22004/ag.econ.277505 |
| _version_ | 1855484281289179136 |
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| author | Colella, Florencia Manon Pace Guerrero, Ignacio Raul |
| author_browse | Colella, Florencia Manon Pace Guerrero, Ignacio Raul |
| author_facet | Colella, Florencia Manon Pace Guerrero, Ignacio Raul |
| author_sort | Colella, Florencia Manon |
| collection | INTA Digital |
| description | Argentina is the fourth highest consumer of sweetened drinks, and the first consumer of soda in the world. In this paper we estimate a quadratic almost ideal demand system (QUAIDS) to explore demand for a number of sweetened and unsweetened beverages in Argentina. We use two household surveys: the last one available, performed in 2012-2013, and the previous one, carried over in 2004-2005. We explore expenditure shares and own and cross price elasticities. These results can shed light on a discussion that was held in 2017 in Congress towards the design of a tax reform on sweet beverages that will affect consumers, farmers, and the retail and food industries. Our results support the notion that a tax applied to highly sweetened beverages will affect consumption: for every 1% increase in price there will be a 1.32% drop in quantity purchased. In addition,we find that for every 1% price increase in highly sweetened beverages there will be a 1.12% increase in the amount of dairy beverages purchased. |
| format | Conferencia |
| id | INTA8862 |
| institution | Instituto Nacional de Tecnología Agropecuaria (INTA -Argentina) |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | International Association of Agricultural Economists |
| publisherStr | International Association of Agricultural Economists |
| record_format | dspace |
| spelling | INTA88622021-03-11T16:19:42Z Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households Colella, Florencia Manon Pace Guerrero, Ignacio Raul Agricultural Policies Food Policies Consumer Economics Consumer Behaviour Economics Price Elasticities Beverages Foods Política Agrícola Política Alimentaria Economía del Consumidor Comportamiento del Consumidor Economía Elasticidad de los Precios Bebidas Alimentos Argentina Argentina is the fourth highest consumer of sweetened drinks, and the first consumer of soda in the world. In this paper we estimate a quadratic almost ideal demand system (QUAIDS) to explore demand for a number of sweetened and unsweetened beverages in Argentina. We use two household surveys: the last one available, performed in 2012-2013, and the previous one, carried over in 2004-2005. We explore expenditure shares and own and cross price elasticities. These results can shed light on a discussion that was held in 2017 in Congress towards the design of a tax reform on sweet beverages that will affect consumers, farmers, and the retail and food industries. Our results support the notion that a tax applied to highly sweetened beverages will affect consumption: for every 1% increase in price there will be a 1.32% drop in quantity purchased. In addition,we find that for every 1% price increase in highly sweetened beverages there will be a 1.12% increase in the amount of dairy beverages purchased. Argentina es el cuarto mayor consumidor de bebidas azucaradas y el primer consumidor de refrescos del mundo. En este artículo estimamos un sistema cuadrático de demanda casi ideal (QUAIDS) para explorar la demanda de una serie de bebidas endulzadas y no endulzadas en Argentina. Utilizamos dos encuestas de hogares: la última disponible, realizada en 2012-2013, y la anterior, llevada a cabo en 2004-2005. Exploramos la participación del gasto y las elasticidades de precio propias y cruzadas. Estos resultados pueden arrojar luz sobre una discusión que se llevó a cabo en 2017 en el Congreso hacia el diseño de una reforma tributaria a las bebidas dulces que afectará a los consumidores, los agricultores y las industrias minorista y alimentaria. Nuestros resultados apoyan la idea de que un impuesto aplicado a las bebidas altamente endulzadas afectará el consumo: por cada 1% de aumento en el precio habrá una caída de 1,32% en la cantidad comprada. Además, encontramos que por cada aumento del 1% en el precio de las bebidas altamente endulzadas, habrá un aumento del 1,12% en la cantidad de bebidas lácteas compradas. Instituto de Economía Fil: Colella, Florencia Manon. Instituto Nacional de Tecnología Agropecuaria (INTA). Centro de Investigación en Ciencias Políticas, Económicas y Sociales. Instituto de Economía; Argentina Fil: Pace Guerrero, Ignacio Raul. Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Economía; Argentina 2021-03-10T20:20:51Z 2021-03-10T20:20:51Z 2018-07-28 info:ar-repo/semantics/documento de conferencia info:eu-repo/semantics/conferenceObject info:eu-repo/semantics/publishedVersion http://hdl.handle.net/20.500.12123/8862 https://ageconsearch.umn.edu/record/277505 Colella, F. & Guerrero, I.R. Pace. (2018). Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households. IN Conference, July 28-August 2, 2018, Vancouver, British Columbia, International Association of Agricultural Economists. http://doi.org/10.22004/ag.econ.277505 eng info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf International Association of Agricultural Economists 30th International Conference of Agricultural Economists, July 28-August 2, 2018, Vancouver, Canadá |
| spellingShingle | Agricultural Policies Food Policies Consumer Economics Consumer Behaviour Economics Price Elasticities Beverages Foods Política Agrícola Política Alimentaria Economía del Consumidor Comportamiento del Consumidor Economía Elasticidad de los Precios Bebidas Alimentos Argentina Colella, Florencia Manon Pace Guerrero, Ignacio Raul Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households |
| title | Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households |
| title_full | Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households |
| title_fullStr | Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households |
| title_full_unstemmed | Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households |
| title_short | Elasticity of demand for sweetened and unsweetened drinks: the case of argentinian households |
| title_sort | elasticity of demand for sweetened and unsweetened drinks the case of argentinian households |
| topic | Agricultural Policies Food Policies Consumer Economics Consumer Behaviour Economics Price Elasticities Beverages Foods Política Agrícola Política Alimentaria Economía del Consumidor Comportamiento del Consumidor Economía Elasticidad de los Precios Bebidas Alimentos Argentina |
| url | http://hdl.handle.net/20.500.12123/8862 https://ageconsearch.umn.edu/record/277505 http://doi.org/10.22004/ag.econ.277505 |
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