Where to Sell the Next Cappuccino? Income Per Capita and Coffee Consumption
10 Pages Posted: 9 Feb 2007 Last revised: 2 Sep 2011
Date Written: September 1, 2011
Abstract
This paper estimates the world demand for coffee using a dataset for 88 countries from 1990 to 2005, and dynamic panel data estimators. Results suggest that the income elasticity of demand is non constant and varies according to a country’s income level. Higher income countries have lower income elasticities than middle and low income ones. Differences in price elasticities are not significant across income groups.
Keywords: Coffee, Demand, Income, Price, Elasticity
JEL Classification: O13, Q11, C23
Suggested Citation: Suggested Citation
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