The effect of a soft-drink tax in Mexico: a time series approach

Arteaga, Julio Cesar and Flores, Daniel and Luna, Edgar (2017): The effect of a soft-drink tax in Mexico: a time series approach.

Abstract

We use a time series approach and industry data to estimate the effect on consumption of an excise tax on soft drinks imposed recently in Mexico. The tax caused a price increase of 12.8% and reduced per-capita consumption about 3.8%. This effect is small in comparison to the effects suggested by most studies that have estimated price elasticities using an almost-ideal-demand-system and household survey data.

• Item Type: MPRA Paper
• Language: English
• Keywords: Soft drinks, Tax, Time series
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H25 - Business Taxes and Subsidies; I - Health, Education, and Welfare > I1 - Health > I12 - Health Behavior

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