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An Econometric Study of the Demand for Bottled, Canned and Bulk Beer

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  • JAMMIE H. PENM

Abstract

This paper uses the absolute price version of the differential demand model to examine substitution possibilities for the consumption of beer in different containers in the period 1968–69 to 1983–84. The results indicate that the effect of beer packaging in beer consumption is significant. The same beer in different containers can be treated as quite different products The conditional substitution between bottled beer and canned beer is the highest among the beers. However, due to a strong ‘income effect’, the unconditional substitution between them is lower than that between bottled beer and bulk beer.

Suggested Citation

  • Jammie H. Penm, 1988. "An Econometric Study of the Demand for Bottled, Canned and Bulk Beer," The Economic Record, The Economic Society of Australia, vol. 64(4), pages 268-274, December.
    • Handle: RePEc:bla:ecorec:v:64:y:1988:i:4:p:268-274
    DOI: 10.1111/j.1475-4932.1988.tb02065.x
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    References listed on IDEAS

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    1. Clements, Kenneth W & Johnson, Lester W, 1983. "The Demand for Beer, Wine, and Spirits: A Systemwide Analysis," The Journal of Business, University of Chicago Press, vol. 56(3), pages 273-304, July.
    2. Bewley, R. A., 1985. "Goodness-of-fit for allocation models," Economics Letters, Elsevier, vol. 17(3), pages 227-229.
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    Cited by:

    1. Clements, Kenneth W. & Mariano, Marc Jim M. & Verikios, George & Wong, Berwyn, 2022. "How elastic is alcohol consumption?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 568-581.
    2. Kenneth W. Clements & Saroja Selvanathan, 1991. "The Economic Determinants Of Alcohol Consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(2), pages 209-231, August.
    3. Andrew Abbott & Kevin Lawler & Marcus Ling, 1998. "An empirical analysis of the effects of the Monopolies and Mergers Commission Beer Orders (1989) on the UK brewing industry," Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 145-149.
    4. James Fogarty, 2010. "The Demand For Beer, Wine And Spirits: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 428-478, July.
    5. Egemen İPEK, 2019. "An Empirical Study on Alcohol Participation and Consumption Decision in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    6. Milham, Nick & Davenport, Scott V. & Penm, Jammie H., 1990. "Substitution Relationships in Australian Beverage Consumption," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 145336, Australian Agricultural and Resource Economics Society.

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