The impact of prices on alcoholic beverage consumption in Chile

Chile is among the countries with the highest alcohol consumption per capita in Latin America, but little has been done in the way of public policy and policy research to overcome this problem. The objective of the present study is to estimate demand elasticities (own-price, cross-price, expenditure...

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Bibliographic Details
Published in:PloS one 2018-10, Vol.13 (10), p.e0205932-e0205932
Main Authors: Araya, Daniel, Paraje, Guillermo
Format: Article
Language:English
Subjects:
Acquired immune deficiency syndrome
Adolescent
AIDS
Alcohol Drinking - economics
Alcohol use
Alcoholic beverages
Alcoholic Beverages - economics
Analysis
Beverage industry
Beverages
Biology and Life Sciences
Budgets
Chile
Commerce - economics
Consumer research
Demand
Dispersion
Economic aspects
Economic models
Elasticity
Elasticity of demand
Female
Humans
Male
Medicine and Health Sciences
Middle Aged
People and places
Policy research
Price elasticity
Prices and rates
Public policy
Research and Analysis Methods
Sensitivity
Social aspects
Social Sciences
Spirits
Supply and demand
Surveys
Systematic review
Wine
Wines
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Summary:Chile is among the countries with the highest alcohol consumption per capita in Latin America, but little has been done in the way of public policy and policy research to overcome this problem. The objective of the present study is to estimate demand elasticities (own-price, cross-price, expenditure and quality) for three groups of alcoholic beverages in Chile: spirits, wines, and beers. The study uses data from the VII Encuesta de Presupuestos Familiares (Family Budget Survey) 2011-2012 conducted by the National Institute of Statistics. Because of problems with the quality of the measurement units, hot-deck imputation method was used with the alcohol purchases that presented problems. To estimate the demand elasticities, the Almost Ideal Demand System (AIDS) method proposed by Deaton was used. Quality decisions were estimated for each beverage separately using an equation proposed by Deaton in the three-step AIDS. The estimated elasticities were more inelastic for spirits (-0.14, P
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0205932