Munich Personal RePEc Archive

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.

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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.

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