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Consumer Demand for Wine and Beer in the Czech Republic, and Their Mutual Influences

Author

Listed:
  • Pavel Syrovátka

    (Department of Business Economics, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

  • Helena Chládková

    (Department of Management, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

  • Pavel Žufan

    (Department of Management, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

Abstract

The paper analyses consumer demand for wine and beer in the Czech Republic in the period of 1991-2013. The objective of this research was to evaluate the elasticity of consumption of wine and beer in reaction to a change of prices and further to a change in the level of a household income. Based on the dynamic models of the gross demand for wine and beer there were determined the coefficients of direct and cross price elasticity, and income elasticity coefficients. In accordance with the identified sizes, respectively, after evaluating their statistical significance, there was carried out the economic analysis of observed demand functions. Analysis of demand functions has shown that the consumptions of wine and beer by the Czech households were not linked on a statistically significant level, in the examined period. Dynamic model of the gross demand for wine showed a statistically insignificant sensitivity of wine consumption to a change of the household income. Wine consumption of Czech households was significantly formed only by its price. Dynamic model of the gross demand for beer has shown that beer consumption by the Czech households responded significantly only to change in household income. Whereas in the case of wine, there was identified an influence of previous consumption on the current one, this was not confirmed in the case of beer.

Suggested Citation

  • Pavel Syrovátka & Helena Chládková & Pavel Žufan, 2015. "Consumer Demand for Wine and Beer in the Czech Republic, and Their Mutual Influences," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 2119-2125.
    • Handle: RePEc:mup:actaun:actaun_2015063062119
    DOI: 10.11118/actaun201563062119
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    References listed on IDEAS

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    1. Gallet, Craig A., 2007. "The demand for alcohol: a meta-analysis of elasticities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-15.
    2. Badi H. Baltagi & James M. Griffin, 2002. "Rational addiction to alcohol: panel data analysis of liquor consumption," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 485-491, September.
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    Cited by:

    1. Tomas MACAK & Jan HRON, 2017. "The cybernetic stability of microeconomic variables in the agricultural sector: A case study from the agritourism field," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(12), pages 531-538.

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