Heterogeneous behavior, obesity and storability in soft drink consumption: A dynamic demand model Report as inadecuate




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In this paper we applied a dynamic estimation procedure to inves-tigate the role of obesity on the demand for soda. The dynamic modelaccounts for storing behaviors, and allowed us to study price sensitiv-ity as well as sale sensitivity of soda consumers. By matching storelevel data to obesity data, we considered the effect of obesity rateson soda demand. We found that higher obesity rates were associatedwith a higher attitude to anticipate future needs and respond to saleprices. Conversely, according to our results, a higher rate of obesitywas also associated to lower price sensitivity. We also considered howsome obesity predictors affected the demand for soda. Our resultscontribute to the existing literature by raising important elements tohelp establish correct policies to fight obesity. For instance, our re-search suggests that a policy intervention restricting the magnitude ofsales would be more successful than a tax increase in modifying thebehavior of obese consumers.

Subject(s): Consumer/Household Economics

Food Consumption/Nutrition/Food Safety

Institutional and Behavioral Economics

Research Methods/ Statistical Methods

Issue Date: 2013

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/150340

Total Pages: 35

Record appears in: Agricultural and Applied Economics Association (AAEA) > 2013 Annual Meeting, August 4-6, 2013, Washington, D.C.





Author: Colantuoni, Francesca ; Rojas, Christian

Source: http://ageconsearch.umn.edu/record/150340?ln=en







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