Demand for beer in the Czech Republic: Understanding long-term on- and off-trade price elasticities

Abstract

Grosová S., Masár M., Kutnohorská O., Kubeš V. (2017): Demand for beer in the Czech Republic: understanding long-term on- and off-trade price elasticities. Czech J. Food Sci., 35: 165-170. We provided estimates of price, cross-price, and income elasticities for on- and off-trade beer consumption using econometric models on time series data from 1994 to 2014. The empirical results indicate that the most important determinants of on-trade demand are the price of off-trade beer, the price of substitutes and past consumption, while the income elasticity was not found to be important. The most important determinants of off-trade beer demand were the price of on-trade beer and the price of substitutes.