Preference Shifts, Structural Breaks and the Domestic Demand for Chilean Wine

Preference Shifts, Structural Breaks and the Domestic Demand for Chilean Wine Cristián Troncoso-Valverde1 Abstract – This paper investigates possible changes in Chilean domestic consumer preferences for wine through the estimation of a demand function that allows for structural breaks and regime shifts in the cointegrating relationship. Our findings support both higher own–price elasticity and higher substitutability between wine and beer after 1982, when a shift in regime in the demand function is found. We believe our findings might be due to the introduction of an increasing number of wine varieties in Chile during the last two decades. We argue that more wine varieties affect domestic consumer preferences by altering the product diversity available in the domestic market.


Subject(s):
Issue Date:
Sep 30 2004
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/156086
Published in:
Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Volume 42, Number 3
Page range:
487-506
Total Pages:
20
JEL Codes:
D11; C22; Q11.
Series Statement:
Volume 42
Number 03




 Record created 2017-04-01, last modified 2017-08-27

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