Analyzing Wine Demand with Artificial Neural Networks

Abstract

In this paper we analyse wine demand in Italy with microdata. Instead of estimating a parametric model, we study the demand following a non parametric approach by means of Artificial Neural Networks. The input set includes the usual economic variables (price and income) and some sociodemographic factors that are also shown to be relevant for demand analysis. We compute price elasticities using two different nonparametric procedures. (JEL Classification: C14, C21, Q11, Q13)