U.S. Non-alcoholic Beverage Demand: Evidence from AIDS Model with Dynamic Effect

This study estimates the degree of habit formation and demand for the U.S. non-alcoholic beverage market by incorporating a dynamic effect in five different beverages. This study employs a linear-approximate almost ideal demand system (LA-AIDS) to model demand for five non-alcoholic beverages from 1974 through 2014. The results show that current consumption of all non-alcohol beverages is positively related to previous consumption by controlling price and expenditure. This study mainly finds that bottled water is the most habitual product of the non-alcoholic beverage group.


Issue Date:
2017-04
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/266965
ISSN:
0738-8950
Language:
English
Published in:
Journal of Agribusiness, Volume 35, Number 1




 Record created 2018-01-23, last modified 2018-04-02

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