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- Title
A Note on Socio-Economic Characteristics and the Demand for Beverages in Nigeria: Does Income Matter?
- Authors
Kolawole Ogundari
- Abstract
The paper investigates demand characteristics of beverage consumption with a focus on the role of income in Nigeria. It uses double hurdle model to analyze the probability of purchasing beverages and the demand for beverages based on 2003/2004 Nigerian Living Standards Survey (NLSS) data. Within this context, the empirical results show that household income increases the probability of purchasing and the demand for beverages in the study. Specifically, our results reveal that a 10 percent rise in household income increases the consumption of beverages by approximately 17 percent. Meaning that an average household in the sample considered the demand for beverages to be a luxury. But a closer look at the results across income groups show that households in the low and high-income groups considered the demand for beverages to be a necessity and a luxury good respectively in the study.
- Subjects
NIGERIA; BEVERAGE consumption; SURVEYS; INCOME; PROBABILITY theory
- Publication
Economic Analysis & Policy, 2013, Vol 43, Issue 3, p293
- ISSN
0313-5926
- Publication type
Article
- DOI
10.1016/S0313-5926(13)50040-3