Demand for Beer in Brazil: An Econometric Study

Posted: 9 Jun 2003

See all articles by João Victor Issler

João Victor Issler

Getulio Vargas Foundation (FGV) - FGV/EPGE Escola Brasileira de Economia e Finanças

Rubens Penha Cysne

Getulio Vargas Foundation (FGV) - FGV/EPGE Escola Brasileira de Economia e Finanças

Marcelo Resende

Universidade Federal do Rio de Janeiro (UFRJ); CESifo (Center for Economic Studies and Ifo Institute)

Ricardo Wyllie

Centro de Investigación y Docencia Económicas (CIDE)

Abstract

The paper econometricaly estimates demand systems for the beer sector in Brazil. The own and cross elasticities of demand display, as a rule, the behavior predicted in theory. One can define upon a conjectural variations model developed for oligopoly, a measure of welfare loss as proportion of the sector's total revenue. Such measure, calculated for different values of the conjectural variation parameter, indicates that the losses associated with the exercise of market power are significant.

Keywords: Market Power, Cointegration, Residual Demand

JEL Classification: C3, L4

Suggested Citation

Issler, João Victor and Cysne, Rubens Penha and Resende, Marcelo and Wyllie, Ricardo, Demand for Beer in Brazil: An Econometric Study . Pesquisa e Planejamento Economico, Vol. 31, No. 2, August 2001, Available at SSRN: https://ssrn.com/abstract=331521

João Victor Issler (Contact Author)

Getulio Vargas Foundation (FGV) - FGV/EPGE Escola Brasileira de Economia e Finanças ( email )

Praia de Botafogo 190/1125, CEP
Rio de Janeiro RJ 22253-900
Brazil
+55 21 2559-5833 (Phone)
+55 21 2553-8821 (Fax)

Rubens Penha Cysne

Getulio Vargas Foundation (FGV) - FGV/EPGE Escola Brasileira de Economia e Finanças ( email )

Praia de Botafogo 190/1125, CEP
Rio de Janeiro RJ 22253-900
Brazil
+55-21-552-5099 (Phone)
+55-21-536-9409 (Fax)

Marcelo Resende

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua Sao Francisco Xavier, 524
Instituto de Economia
Rio de Janeiro RJ 21949
Brazil

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Ricardo Wyllie

Centro de Investigación y Docencia Económicas (CIDE) ( email )

Carretera Mexico Toluca 3655
Col. Lomas de Santa Fe
Mexico City, Mexico 01210
Mexico

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