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The demand for UK beer: estimates of the long-run on- and off-trade beer price elasticities

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  • P. R. Tomlinson
  • J. Robert Branston

Abstract

Over the last 30 years, UK beer sales have been falling while the market itself has experienced a dynamic shift from on-trade to off-trade sales. This article provides estimates of the long-run price, cross price and income elasticities, for both on- and off-trade beer consumption. The results shed light on the changing UK beer market, while also having different implications for imposing beer excise duties and the debate on a minimum price per unit for alcohol.

Suggested Citation

  • P. R. Tomlinson & J. Robert Branston, 2014. "The demand for UK beer: estimates of the long-run on- and off-trade beer price elasticities," Applied Economics Letters, Taylor & Francis Journals, vol. 21(3), pages 209-214, February.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:3:p:209-214
    DOI: 10.1080/13504851.2013.848022
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    Cited by:

    1. Samira Rousselière & Gaëlle Petit & Thomas Coisnon & Anne Musson & Damien Rousselière, 2022. "A few drinks behind—Alcohol price and income elasticities in Europe: A microeconometric note," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 301-315, February.
    2. Stanislava Grosová & Michal Masár & Olga Kutnohorská & Vladimír Kubeš, 2017. "The demand for beer in Czech Republic: inderstanding longrun on- and off-trade price elasticities," Czech Journal of Food Sciences, Czech Academy of Agricultural Sciences, vol. 35(2), pages 165-170.
    3. Meng, Yang & Brennan, Alan & Purshouse, Robin & Hill-McManus, Daniel & Angus, Colin & Holmes, John & Meier, Petra Sylvia, 2014. "Estimation of own and cross price elasticities of alcohol demand in the UK—A pseudo-panel approach using the Living Costs and Food Survey 2001–2009," Journal of Health Economics, Elsevier, vol. 34(C), pages 96-103.
    4. Rachel A. Smith & C. Nicholas McKinney & Steven B. Caudill & Franklin G. Mixon, 2016. "Consumer ratings and the pricing of experience goods: hedonic regression analysis of beer prices," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-10, December.

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