IDEAS home Printed from https://ideas.repec.org/a/ags/jloagb/266965.html
   My bibliography  Save this article

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

Author

Listed:
  • Kim, GwanSeon
  • Zheng, Yuqing

Abstract

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.

Suggested Citation

  • Kim, GwanSeon & Zheng, Yuqing, 2017. "U.S. Non-alcoholic Beverage Demand: Evidence from AIDS Model with Dynamic Effect," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 35(1), April.
    • Handle: RePEc:ags:jloagb:266965
    DOI: 10.22004/ag.econ.266965
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/266965/files/JABGwanSeonKim.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/266965/files/JABGwanSeonKim.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.266965?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Okrent, Abigail M. & MacEwan, Joanna P., 2014. "The Effects of Prices, Advertising, Expenditures, and Demographics on Demand for Nonalcoholic Beverages," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(1), pages 31-52, April.
    2. Okrent, Abigail M. & MacEwan, Joanna P., 2014. "The Effects of Prices, Advertising, Expenditures, and Demographics on Demand for Nonalcoholic Beverages," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0, pages 1-22.
    3. Okrent, Abigail M. & MacEwan, Joanna P., 2014. "The Effects of Prices, Advertising, Expenditures, and Demographics on Demand for Nonalcoholic Beverages," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), pages 1-22, April.
    4. Chen Zhen & Michael K. Wohlgenant & Shawn Karns & Phillip Kaufman, 2010. "Habit Formation and Demand for Sugar-Sweetened Beverages," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 175-193.
    5. James L. Seale & Mary A. Marchant & Alberto Basso, 2003. "Imports versus Domestic Production: A Demand System Analysis of the U.S. Red Wine Market," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 187-202.
    6. Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U. S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(2), pages 147-159, October.
    7. Steven T. Yen & Biing-Hwan Lin & David M. Smallwood & Margaret Andrews, 2004. "Demand for nonalcoholic beverages: The case of low-income households," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 309-321.
    8. Blanciforti, Laura & Green, Richard, 1983. "An Almost Ideal Demand System Incorporating Habits: An Analysis of Expenditures on Food and Aggregate Commodity Groups," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 511-515, August.
    9. Lin, Biing-Hwan & Smith, Travis A. & Lee, Jonq-Ying & Hall, Kevin D., 2011. "Measuring weight outcomes for obesity intervention strategies: The case of a sugar-sweetened beverage tax," Economics & Human Biology, Elsevier, vol. 9(4), pages 329-341.
    10. Boyer, Marcel, 1983. "Rational demand and expenditures patterns under habit formation," Journal of Economic Theory, Elsevier, vol. 31(1), pages 27-53, October.
    11. Nemati, Mehdi & Saghaian, Sayed H., 2016. "Dynamics of Price Adjustment in Qualitatively Differentiated Markets in the U.S.: The Case of Organic and Conventional Apples," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229950, Southern Agricultural Economics Association.
    12. Henry L. Bryant & George C. Davis, 2008. "Revisiting Aggregate U.S. Meat Demand with a Bayesian Averaging of Classical Estimates Approach: Do We Need a More General Theory?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 103-116.
    13. Lluch, Constantino, 1974. "Expenditure, Savings and Habit Formation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(3), pages 786-797, October.
    14. Yuqing Zheng & Chen Zhen & James Nonnemaker & Daniel Dench, 2016. "Advertising, Habit Formation, and U.S. Tobacco Product Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1038-1054.
    15. Xun Li & Rigoberto A. Lopez, 2015. "Do Brand Advertising Spillovers Matter?," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 229-242, April.
    16. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    17. Capps, Oral, Jr. & Clauson, Annette L. & Guthrie, Joanne F. & Pittman, Grant & Stockton, Matthew C., 2005. "Contributions Of Nonalcoholic Beverages To The U.S. Diet," Economic Research Report 33592, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhai, Tianchang & Li, Lei & Wang, Jingjing & Si, Wei, 2022. "Will the consumption tax on sugar-sweetened beverages help promote healthy beverage consumption? Evidence from urban China," China Economic Review, Elsevier, vol. 73(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bo Chen & Wuyang Hu & Qingjie Zhou, 2020. "Effects of local and national advertising across brands: the case of yogurt in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1260-1281, October.
    2. Samane Zare & Mahdi Asgari & Timothy Woods & Yuqing Zheng, 2020. "Consumer proximity and brand loyalty in craft soda marketing: A case study of Ale‐8‐One," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 522-541, October.
    3. Anurag Sharma & Katharina Hauck & Bruce Hollingsworth & Luigi Siciliani, 2014. "The Effects Of Taxing Sugar‐Sweetened Beverages Across Different Income Groups," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1159-1184, September.
    4. Mendez, Samara & Peacock, Jacob & The Humane League Labs, 2021. "Exploring the impact of plant-based milk alternatives in the US," OSF Preprints tdghp, Center for Open Science.
    5. Biondi, Beatrice & Castiglione, Concetta & Mazzocchi, Mario, 2021. "Demand drivers and changes in food-related emissions in the UK: A decomposition approach," Ecological Economics, Elsevier, vol. 188(C).
    6. Andres Silva & Senarath Dharmasena, 2016. "Considering seasonal unit root in a demand system: an empirical approach," Empirical Economics, Springer, vol. 51(4), pages 1443-1463, December.
    7. Harding, Matthew & Lovenheim, Michael, 2017. "The effect of prices on nutrition: Comparing the impact of product- and nutrient-specific taxes," Journal of Health Economics, Elsevier, vol. 53(C), pages 53-71.
    8. Leschewski, Andrea & Weatherspoon, Dave D. & Kuhns, Annemarie, 2016. "A Segmented Hedonic Analysis of the Nutritional Composition of Fruit Beverages," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-22, August.
    9. Silva, Andres & Dharmasena, Senarath, 2013. "Modeling Seasonal Unit Roots as a Simple Empirical Method to Handle Autocorrelation in Demand Systems: Evidence from UK Expenditure Data," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149928, Agricultural and Applied Economics Association.
    10. Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U.S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), pages 1-13.
    11. Lin, Biing-Hwan & Dong, Diansheng & Carlson, Andrea & Rahkovsky, Ilya, 2017. "Potential dietary outcomes of changing relative prices of healthy and less healthy foods: The case of ready-to-eat breakfast cereals," Food Policy, Elsevier, vol. 68(C), pages 77-88.
    12. Lakkakula, Prithviraj & Schmitz, Andrew & Ripplinger, David, 2016. "U.S. Sweetener Demand Analysis: A QUAIDS Model Application," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-16, September.
    13. Khanal, Binod & Lopez, Rigoberto, 2021. "Demand for Plant Based Beverages and Market Competition in Fluid Milk Markets," 2021 Conference, August 17-31, 2021, Virtual 315369, International Association of Agricultural Economists.
    14. Dharmasena, Senarath & Davis, George & Capps, Oral, Jr., 2014. "Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), pages 1-17.
    15. Yuqing Zheng & Chen Zhen & Daniel Dench & James M. Nonnemaker, 2017. "U.S. Demand for Tobacco Products in a System Framework," Health Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 1067-1086, August.
    16. Kesavan, Thulasiram, 1988. "Monte Carlo experiments of market demand theory," ISU General Staff Papers 198801010800009854, Iowa State University, Department of Economics.
    17. Huang, Lu & Liu, Yizao, 2017. "Health information and consumer learning in the bottled water market," International Journal of Industrial Organization, Elsevier, vol. 55(C), pages 1-24.
    18. Senarath Dharmasena & Oral Capps, 2012. "Intended and unintended consequences of a proposed national tax on sugar‐sweetened beverages to combat the U.S. obesity problem," Health Economics, John Wiley & Sons, Ltd., vol. 21(6), pages 669-694, June.
    19. Hayden Stewart & Fred Kuchler & William Hahn, 2021. "Is competition among soft drinks, juices, and other major beverage categories responsible for reducing Americans' milk consumption?," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 731-748, October.
    20. Sule Birim & Ipek Kazancoglu & Sachin Kumar Mangla & Aysun Kahraman & Yigit Kazancoglu, 2024. "The derived demand for advertising expenses and implications on sustainability: a comparative study using deep learning and traditional machine learning methods," Annals of Operations Research, Springer, vol. 339(1), pages 131-161, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jloagb:266965. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeaggea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.