Dynamic almost ideal demand systems: an empirical analysis of alcohol expenditure in Ireland

Eakins, John; Gallagher, Liam A.

doi:10.1080/0003684032000066796

Cited by 52 publications

(23 citation statements)

References 18 publications

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“…The practical easiness that Equation 6 brings about is its property of model selection tool since it nests all our three models. 1 Finally, it can be noted that some of the studies using various versions of AIDS models appeared in Applied Economics Journals confirm the suitability of AIDS models in empirical studies (Xepapadeas and Habib, 1995;Asche, 1996;Edgerton and Shukur, 1996;Chambers and Nowman, 1997;Gracia et al, 1998;Eakins and Gallagher, 2003;Klonaris and Hallam, 2003;and Karagiannis and Velentzas, 2004). The paper is organized as follows: Section II discusses the results of model comparison and elasticities obtained.…”

Section: Introductionmentioning

confidence: 94%

Demand systems for agricultural products in OECD countries

Erdil¹

2006

Applied Economics Letters

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This study concerned with the estimation of demand systems for agricultural products in OECD countries. Three representatives demand systems with their extensions, namely the Rotterdam Model, An Almost Ideal Demand System (AIDS), and CBS model are used. These models are estimated by Seemingly Unrelated Regression (SUR) method. The procedures to estimate demand systems suggest significant empirical regularities for agricultural products in OECD countries. The study also applies a procedure for model selection. This procedure implies the superiority of AIDS and CBS models over the Rotterdam model. The main contribution of this study is to model demand for agricultural products over a wide array of items and across large number of countries.

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Section: Introductionmentioning

confidence: 94%

Demand systems for agricultural products in OECD countries

Erdil¹

2006

Applied Economics Letters

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“…For instance, Janda et al (2010) applied AIDS model to estimate the demand for alcoholic beverages in Czech Republic to discuss the potential impact of a tax intervention. Eakins and Gallagher (2003) employed 3 versions of AIDS model to estimate demand elasticity of beer, spirits and wine in Ireland. In Vietnam, we find some studies estimating demand elasticity using AIDS framework such as Le (2008) and Vu (2009).…”

Section: Introductionmentioning

confidence: 99%

The Determinants of an Econometric Demand Model for Beverages

Toan¹

2020

IJEBA

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Purpose:The study attempts to explore the determinants of demand for alcoholic and other beverages to see how a rise in prices of alcohol and other beverages and in household expenditure would influence demand. From the results, we discuss the effectiveness of a prospective excise tax increase on demand for alcoholic and other beverages. Design/Methodology/Approach: We use the Almost Ideal Demand System to analyze the demand for alcoholic and other beverages. A two-stage estimation approach is employed to estimate the model with data from Vietnam Households Living Standard survey in 2016. In the first stage, we model the choice of consuming or not consuming by a probit regression model. In the second stage, we estimate the demand system by seemingly unrelated regression (SUR). Findings: We find that demand for beer, other alcoholic beverages, and non-alcoholic packed drinks is elastic to own-price. However, as demand for beer and non-alcoholic packed drinks is also elastic to income, consumption would rise as income grows. Practical implications: Our findings have significant implications for policymakers and beverage producers. The findings suggest that an increase in excise tax would be an effective solution to control demand for alcoholic beverages. Beverage producers could also use the results to design pricing strategies and forecast consumer behaviors. Originality/Value: We contribute new findings to the literature of beverage demand analyses. Our findings differ from those in previous studies in the context of both developed and developing countries, which show that demand for alcoholic beverages is inelastic to own-prices. The findings have important implications for policymakers and beverage producers.

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“…Besides, the small coefficients of the Durbin Watson estimators in table 4 suggest modeling dynamics might be important. In this respect it would be appropriate to test cointegration and estimate systems of error correction models (Anderson andBlundell 1983 and1984;Eakins and Gallagher 2003).…”

Section: Ah1n1 Impact On the Mexican Pork Meat Marketmentioning

confidence: 99%

AH1N1 impact on the Mexican pork meat market

Gaytán

Chapa

2017

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Resumen: Se estiman los efectos de la influenza AH1N1 en el consumo de carne de puerco a través de un modelo de demanda de consumo AIDS (por sus siglas en inglés) para el consumo de carne en México. Adicionalmente, los efectos indirectos a través de la economía mexicana son calculados con un modelo de equilibrio general. Se concluye que el presunto riesgo de contraer la influenza AH1N1 mediante el consumo de carne de puerco provocó pérdidas económicas de 94 millones de dólares. El rumor afectó a los sectores: porcino, de venta de granos y de manufactura de alimentos, bebidas y tabaco. Las familias pobres rurales fueron las más afectadas.Abstract: This article presents estimates of AH1N1's effects on the consumption of pork through an Almost Ideal Demand System (AIDS) for meat consumption in Mexico. Additionally, indirect effects through the Mexican economy are estimated using a general equilibrium model that captures the effects of intersectoral relationships and the induced effects by the circular flow of income. It is concluded that the presumed risk of contracting AH1N1 via pork consumption provoked total economic losses of $94 million. The rumor affected the pork sector, the grains sector and the manufacturing sector of food, beverages and tobacco. The poor rural households were the most affected.

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Dynamic almost ideal demand systems: an empirical analysis of alcohol expenditure in Ireland

Cited by 52 publications

References 18 publications

Demand systems for agricultural products in OECD countries

Demand systems for agricultural products in OECD countries

The Determinants of an Econometric Demand Model for Beverages

AH1N1 impact on the Mexican pork meat market

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