Tagged: price elasticity

Quality matters: alcohol edition - The Dismal Science

Eric Crampton Aug 23, 2017

I’ve noted John Gibson’s work showing that standard demand estimation techniques overestimate the price elasticity of demand for sugary drinks, and consequently overestimate the effects of soda taxes. Gibson shows that, because most empirical work uses household expenditure on the product category divided by some measure of average price, that work bunches together consumer shifts along both quality and quantity … Read More

Food taxes and subsidies will probably protect health & reduce inequalities – but the devil is in the detail - Public Health Expert

Public Health Expert Oct 09, 2013

Professors Tony Blakely, Cliona Ni Mhurchu and Nick Wilson Research teams we lead have published two papers in the last few weeks on food taxes and subsidies – both of which depend on what are called price elasticities.  Timely, in … Continue reading → … Read More