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Conditional Demand System for Beverages

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  • Brown, Mark G.
  • Jauregui, Carlos E.

Abstract

Estimates of a conditional demand system for twelve beverages, based on the Rotterdam model subject to a full, first-order autoregressive process, are discussed. Impacts of beverage prices, total beverage expenditures and promotions on beverage quantities demanded are provided. The results indicate that all beverages were normal goods; the majority had price elastic demands; most had a relatively large own-promotion effect; and a number of significant cross-promotional effects exist, indicating a relatively high level of competition for market share among the beverages studied.

Suggested Citation

  • Brown, Mark G. & Jauregui, Carlos E., 2011. "Conditional Demand System for Beverages," Research papers 104335, Florida Department of Citrus.
    • Handle: RePEc:ags:fdcrrp:104335
    DOI: 10.22004/ag.econ.104335
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    References listed on IDEAS

    as
    1. Brown, Mark G., 2008. "Impact of Income on Price and Income Responses in the Differential Demand System," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(2), pages 593-608, August.
    2. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    3. Brown, Mark G. & Behr, Robert M. & Lee, Jonq-Ying, 1994. "Conditional Demand And Endogeneity? A Case Study Of Demand For Juice Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(01), pages 1-12, July.
    4. Brown, Mark G. & Lee, Jonq-Ying, 2007. "Impacts of Promotional Tactics in a Conditional Demand System for Beverages," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(2), pages 1-16.
    5. Berndt, Ernst R & Savin, N Eugene, 1975. "Estimation and Hypothesis Testing in Singular Equation Systems with Autoregressive Disturbances," Econometrica, Econometric Society, vol. 43(5-6), pages 937-957, Sept.-Nov.
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