Beer Consumption in the Czech Republic and its Determinants

Abstract

The study identifies the main beer consumption determinants in the Czech Republic and quantifies their influence on the beer consumption. The analysis covers three areas – identification of the main determinants of Czech beer consumption, quantification of the influence of these factors on beer consumption, and examination of beer consumption forecasting possibilities. Time series of selected variables containing annual data of the 1994–2014 period are analysed. The main determinants are defined in accord with the general economic theory, their influence is measured using an econometric model, and quality of the model for prognostic purposes is verified using an ex-post prognosis. Based on empirical analysis, the price of lager beer, income, and influence of financial crisis were determined as the main determinants of Czech beer consumption. In addition, inelastic reaction of beer consumption on their changes was proven. The estimated model may be considered suitable for prognostic purposes. The Czech beer market and/or beer consumption in the examined period can be considered as specific, but stable.

The importance of the forecast of the number of inhabitants of the Czech Republic as a basis for the effective development of the transport industry

“…The resulting vectors were normalized by one, and then the cosines of the angles between these vectors (11) were calculated. In parallel with this, correlation coefficients were calculated between time series of exchange rates of shares of Komercni Banka (BKOM), CEZ A.S.…”

“…The cosine of the angle between the vectors formed as a result of the decomposition of the statistical series of securities yields by orthagonal Chebyshev polynomials of the first kind (11).…”

“…The authors (Rumánková, Lenka et al 2019), the attractiveness of the stock market for private investors largely depends on its information efficiency.…”

“…𝑚 ) -expected rate of return of the market portfolio 𝐸(𝑅 𝑚 ) − 𝑅 𝑓 -risk premium from investment activity 𝜑 = cos (𝜃) 𝑖𝑚 -is the cosine of the angle(11) between the vectors in the space formed by the orthogonal Chebyshev polynomials of the first year for the market and for a certain security. For the securities market 𝜑 = 1 , each type i of securities will have its own individual coefficient 𝜑 𝑖 .…”

“…Table of cosines of angles(11) between the time series expansion vectors of the exchange rate value of shares of Komercni Banka (BKOM), CEZ A.S. (CEZP), Colt CZ Group SE (CZG), Erste Bank (ERST), Kofola CeskoSlovensko A.S., Moneta Money Bank A.S. (MONET), Photon (PENP), Vienna insurance group (VIGR) on Chebyshev polynomials of the first kind, obtained after normalization of vectors (6) by one, (obtained by the author).…”