Public Policies and the Demand for Carbonated Soft Drinks: A Censored Quantile Regression Approach

Heavy consumption of soda may contribute to obesity, strokes, and cardiac problems. From a health perspective, the distribution of the consumption is at least as important as the mean. Censored as well as ordinary quantile regression techniques were used to estimate the demand for sugary soda based on household data from 1989 to 1999. It was found that heavy drinkers are more price- and expenditure-responsive than are light drinkers. The study shows that increasing the taxes on carbonated soft drinks will lead to a small reduction in consumption for small and moderate consumers and a huge reduction for heavy consumers.


Issue Date:
2005
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/24737
Total Pages:
13
JEL Codes:
D12; I10
Series Statement:
Contributed Paper




 Record created 2017-04-01, last modified 2017-11-20

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