Where to sell the next cappuccino? Income per capita and coffee consumption

Economics Bulletin, 2011, vol. 31, issue 3, 2694-2700

Abstract: This paper estimates the world demand for coffee using a dataset for 88 countries from 1990 to 2005, and dynamic panel data estimators. Results suggest that the income elasticity of demand is non constant and varies according to a country's income level. Higher income countries have lower income elasticities than middle and low income ones. Differences in price elasticities are not significant across income groups.

Keywords: Coffee; Demand; Income; Price; Elasticity (search for similar items in EconPapers)
JEL-codes: O1 Q1 (search for similar items in EconPapers)
Date: 2011-09-21
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