An excise tax on non-alcoholic beverages: a rational addiction approach
| dc.contributor.advisor | Pernia, Ernesto | |
| dc.contributor.author | Cuevas, Mary Anne E. | |
| dc.contributor.author | Masancay, Dustin RJ F. | |
| dc.date.accessioned | 2025-01-21T02:29:03Z | |
| dc.date.available | 2025-01-21T02:29:03Z | |
| dc.date.issued | 2007-10 | |
| dc.description.abstract | This study, using aggregate time-series data, estimates the demand for non-alcoholic beverages in the Philippines following the rational addiction framework of Becker and Murphy (1988). Analysis of the economic incidence of the VAT on non-alcoholic beverages shows that low income households are less burdened by the VAT levied on non-alcoholic beverages compared with sin products such as cigarettes and alcohol. Regression results also ·show that non-alcoholic beverage consumers are forward-looking. Consistent with the rational addiction theory, past and future consumptions significantly affect present consumption. Short- and long-run price elasticities are also calculated. In the short run, demand is price-inelastic; however, in the long run, the demand seems to be more price- responsive. It may take time for the goals of a sumptuary tax on non-alcoholic drinks to take effect. The rationale of a sumptuary tax on non-alcoholic beverages to limit the consumption of the discouraged commodity appears to have basis. | |
| dc.identifier.uri | https://selib.upd.edu.ph/etdir/handle/123456789/4156 | |
| dc.language.iso | en | |
| dc.subject | Excise tax | |
| dc.subject | Taxation | |
| dc.subject | Non-alcoholic beverages | |
| dc.subject | Manufacturing industry | |
| dc.subject | Food industry | |
| dc.subject | Beverages industry | |
| dc.title | An excise tax on non-alcoholic beverages: a rational addiction approach | |
| dc.type | Thesis |