Demand for Beer in Brazil: An Econometric Study
Posted: 9 Jun 2003
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: Suggested Citation