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Where to sell the next cappuccino? Income per capita and coffee consumption

Author

Listed:
  • Arturo Jose Galindo

    (Inter-American Development Bank)

Abstract

This paper estimates the world demand for coffee using a dataset for 88 countries from 1990 to 2005, and dynamic panel data estimators. Results suggest that the income elasticity of demand is non constant and varies according to a country's income level. Higher income countries have lower income elasticities than middle and low income ones. Differences in price elasticities are not significant across income groups.

Suggested Citation

  • Arturo Jose Galindo, 2011. "Where to sell the next cappuccino? Income per capita and coffee consumption," Economics Bulletin, AccessEcon, vol. 31(3), pages 2694-2700.
    • Handle: RePEc:ebl:ecbull:eb-11-00528
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P242.pdf
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    More about this item

    Keywords

    Coffee; Demand; Income; Price; Elasticity;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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