Complete almost ideal demand system approach to the Czech alcohol demand

Abstract

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