| The objective of the study is to estimate demand for wine in Australia, based on both the systems approach and the single equation approach. Both approaches consider demand for three categories of alcoholic drinks (beer, wine and spirits) in a seemingly unrelated regression framework to take account of cross-equation correlations. Time series data on retail price indexes and apparent per capita consumption of alcoholic beverages for Australia for the period 1975/76 to 1998/99 are used for econometric estimation. The results show that over the short run, beer and wine are necessities; however, over the long run, wine becomes a luxury good. Beer and wine are complements. Demand for all three beverages is price inelastic. The study also found that the... |
