Objective:

Estimate the price and income elasticities of the demand for beer in Mexico.

Materials and methods:

Monthly series on beer sales and prices from 2007 to 2019 were used. Long-term elasticity was estimated using ordinary least squares (OLS). Short-term elasticity was estimated using a dynamic ordinary least squares (DOLS) model.

Results:

The price elasticity was in the long term of -1.40 (95%CI: -2.53 to -0.27) and -1.31 (95%CI: -2.46 to -0.15) in the short term. The income elasticity of demand in the long and short term was estimated at 0.86 (95%CI: 0.44-1.29 and 0.93 (95%CI: 0.51-1.34), respectively.

Conclusions:

The findings of this study suggest that fiscal policies may have a positive impact on the health of the population by reducing beer consumption.

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