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Abstract
The Norwegian purchases pattern of non-alcoholic beverages has changed substantially. The
observed changes cannot be fully explained by changes in relative prices and income, and
other variables are likely to be important. Cohort variables have not been given much
attention in demand analysis. Our main contribution is to include age, period, and cohort
(APC) variables into a demand system. The system is applied to purchases of non-alcoholic
beverages. Wald tests show the importance of including APC variables. A Monte-Carlo
analysis shows how replacing the APC variables with an age and a trend variable results in
misleading age effects on milk purchases.