Demand For Wine And Alcoholic Beer In Spain

The demand for Spanish wines has been decreasing in the last decades and very little is known about the demand for alcoholic beverages in Spain across provinces.I estimate price and expenditure elasticities for three different types of alcoholic beverages:namely premium wine,non-premium wine,and alcoholic beer from seventeen Spanish provinces using an Almost Ideal Demand System(AIDS).I find that premium wines,non-premium wines and alcoholic beer have different patterns across provinces and these patterns have implications for producers and consumer marketing.