Preference shifts, structural breaks and the domestic demand for Chilean wine

Troncoso-Valverde, Cristián

doi:10.1590/s0103-20032004000300005

Cited by 3 publications

(2 citation statements)

References 18 publications

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“…Using the demand function, Troncoso-Valverde (2004) found that more wine varieties affect domestic consumer preferences by changing the product diversity available in the domestic market of wines commercialized in Chile.…”

Section: Resultsmentioning

confidence: 99%

Use of simulated annealing in standardization and optimization of the acerola wine production

Almeida¹,

Alves²,

Araújo³

et al. 2014

Food Sci. Technol (Campinas)

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Section: Resultsmentioning

confidence: 99%

Use of simulated annealing in standardization and optimization of the acerola wine production

Almeida¹,

Alves²,

Araújo³

et al. 2014

Food Sci. Technol (Campinas)

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“…There is at least one estimate of elasticities for alcoholic beverages for Latin America, a study on demand for wine in Chile [ 11 ]. This work seeks to demonstrate a structural break in the demand for wines in Chile using time series.…”

Section: Introductionmentioning

confidence: 99%

The impact of prices on alcoholic beverage consumption in Chile

Araya

Paraje

2018

PLoS ONE

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Introduction and objectiveChile 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.Data and methodsThe 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.ResultsThe estimated elasticities were more inelastic for spirits (-0.14, P<0.01), followed by wines (-0.77, P<0.01) and beers (-0.93, P<0.01). Spirits reported less sensitivity to changes in the total budget, while wines reported the most sensitivity to changes in the total budget (expenditure elasticity). Wines also reported the most sensitivity related to quality for changes in the total budget (0,20, meaning that a 10% increase in a household’s total expenditure increases the “quality” of purchased wines by 2%).ConclusionsOwn-price elasticities reported for spirits, wines and beers are consistently negative, and inelastic, in line with international evidence. Although own-price elasticities for spirits is more inelastic than found in most studies, its quality-elasticity is more positive and greater. This could be explained by the greater price dispersion of spirits, as well as spirits (and wine) being consumed more than beers in Chile. This in turn may be because consumers have the option of switching to cheaper, Chilean-produced spirits such as pisco and wines when prices rise. The existence of these relatively broad quality-elasticities points to the need for a change in the alcohol tax structure from the current ad-valorem tax to a specific tax that could reduce price dispersion and curb total consumption.

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The Use of Economic Tools to Develop a Consensus on Alcohol Policies within and between Jurisdictions

Rinaldi¹

2007

Contemporary Drug Problems

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Alcohol policies encounter major problems because of the lack of consensus within and between jurisdictions. Tools which economists have developed in other contexts may be of use in addressing these problems.The consensus between neighboring jurisdictions can be facilitated, when a jurisdiction with higher alcohol taxes and bigger alcohol revenue offers to share part of it with the neighbor with lower alcohol revenue and lower alcohol taxes. The final solution can consist in both jurisdictions having larger revenues and in reduced alcohol consumption.Decreasing support for alcohol curbing policies within some jurisdictions could probably be reversed, if such tools as revenue neutrality of alcohol taxes, heavier taxation of heavy drinkers, introduction of minimum prices, substitution of low quality drinks by high quality food and drinks were to be employed and if greater attention were to be given to the determinants of alcohol needs and in particular of 'happiness'.

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Preference shifts, structural breaks and the domestic demand for Chilean wine

Cited by 3 publications

References 18 publications

Use of simulated annealing in standardization and optimization of the acerola wine production

Use of simulated annealing in standardization and optimization of the acerola wine production

The impact of prices on alcoholic beverage consumption in Chile

The Use of Economic Tools to Develop a Consensus on Alcohol Policies within and between Jurisdictions

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