Agric. Econ. - Czech, 2010, 56(9):421-434 | DOI: 10.17221/117/2009-AGRICECON

Complete almost ideal demand system approach to the Czech alcohol demand

Karel JANDA1,2,3, Jakub MIKOLÁŠEK1, Martin NETUKA1
1 Department of Microeconomics and Mathematical Methods, Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Czech Republic
2 Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics, Prague, Czech Republic
3 Affiliate Fellow at CERGE-EI, Prague, Czech Republic

Tax interventions into alcohol beverages market are an important and recently discussed tool of the Czech fiscal policy. The impact of any such measure would be strongly dependent on the microeconomic behavior of the consumers. The aim of this paper is to provide a reliable set of income, own-price, and cross-price elasticities of demand for the key alcohol beverages based on the Almost Ideal Demand System model applied on the most relevant Czech data set of the Household Budget Statistics.

Keywords: Almost Ideal Demand System, alcohol, beer, brewing industry, consumption, the Czech Republic, elasticity, price, spirits, tax, wine

Published: September 30, 2010  Show citation

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JANDA K, MIKOLÁŠEK J, NETUKA M. Complete almost ideal demand system approach to the Czech alcohol demand. Agric. Econ. - Czech. 2010;56(9):421-434. doi: 10.17221/117/2009-AGRICECON.
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