The Demand for Beer

State monopolies and alcoholic beverage consumption

“…3 A major problem in earlier studies has been the availability of data on retail transactions prices for alcoholic beverages. Cross-sectional beer demand studies have used state taxes on beer as a proxy for price differences (Horowitz and Horowitz 1965;Weinstein 1983), wholesale prices provided by manufacturers and other confidential data sources (Hogarty and Elzinga 1972;Schweitzer, Intriligator, and Salehi 1983;Omstein and Hanssens 1985), and average price estimates from the trade publication Beverage World (Uri 1986). None of these measures provided higher R 2 in preliminary regressions or could not be replicated for disclosure reasons.…”

The Kalman filter approach for testing structural change in the demand for alcoholic beverages in the US

“…The results are presented in Table l, model A' . All coefficients are significant (at the a=5% level) and have the expected sign, except the coefficient of advertising 3Similar models have been estimated for Canada (Johnson and Oksanen, 1977), United Kingdom (Duffy, 1983), and United States (Hogarty and Elzinga, 1972) for all or a subset of these three commodity groups. Experimentation with Nerlove and Arrow (1962) model did not show any dynamic effect of advertising on demand.…”

When Helping the Small Hurts the Middle: Beer Excise Duties and Market Concentration

“…Estimating the elasticity of demand for beer Horowitz and Horowitz (1965) use excise taxes as proxy for the beer price, which indirectly (already) links beer excise taxes with the market structure. Also Hogarty and Elzinga (1972) estimate the demand for beer and find that excise taxes do significantly affect consumption behavior. For further research on the demand for beer and price formation in reaction to the market structure see Lynk (1984Lynk ( , 1985 and Tremblay (1985).…”