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Revisiting Sugar Taxes and Sugary Drink Consumption: Evidence from the Random-Coefficient Demand Model

Palma, Marco A.; Zhang, Yinjunjie


Berkeley's sugar tax policy is currently under intense scrutiny and debate, while similar tax policies are rapidly expanding to other U.S. states. Contrary to theoretical predictions and policy expectations, previous literature documents short-term evidence of increased consumption of sugary drinks in response to a sugar tax policy. We investigate the underlying mechanism behind this behavioral anomaly using the Berry, Levinsohn, and Pakes (BLP) random coefficient (RC) logit demand model in...[Show more]

CollectionsANU Research Publications
Date published: 2021
Type: Journal article
Source: Journal of Agricultural and Resource Economics
DOI: 10.22004/ag.econ.303601
Access Rights: Open Access


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