Abstract

This chapter analyses the ways in which advertising expenditures influence the demand for alcoholic and non-alcoholic beverages in France. Using annual data for the period 1977 to 2004, a conditional dynamic demand system is estimated econometrically for spirits, champagne and sparkling wines, still wine, beer and non-alcoholic beverages. Advertising expenditure is modelled as affecting per capita demand for alcoholic and non-alcoholic beverages through a translation parameter. Special attention is given to the impact of the Evin Law implemented in 1991 in France which restricted the use of advertising for alcoholic beverages. The results show that the law has affected consumer demand for alcoholic beverages and support is found for the existence of subsistence levels which in the model is captured by translation variables.

Published in

Title: Wine Economics - Quantitative Studies and Empirical Applications
ISBN: 978-1-137-28951-3
Publisher: Palgrave Macmillan

SLU Authors

• Hoffmann, Ruben

  • Department of Economics, Swedish University of Agricultural Sciences
    

• Surry, Yves

  • Department of Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Economics


Permanent link to this page (URI)

https://res.slu.se/id/publ/52227