Estimación de la demanda de bebidas no alcohólicas en Ecuador

Abstract

This paper explores the potential effects of a tax on sugar-sweetened beverages as a public health policy in Ecuador by estimating the own, cross-price and income elasticities of non-alcoholic beverages at household level. We estimated a Quadratic Almost Ideal Demand System (QUAIDS) and found that, contrary to soft drinks, the consumption of soda is elastic. This revealed to be independent of the household income level. It was also found a substitution relationship between soda drinks and dairy drinks. Thus, taxation of soda drinks could decrease its consumption and direct it to healthier alternatives.