TY  - RPRT
        AU  - Andalón, Mabel
AU  - Gibson, John
        TI  - The 'Soda Tax' is Unlikely to Make Mexicans Lighter: New Evidence on Biases in Elasticities of Demand for Soda
        PY  - 2017/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10765
        UR  - https://www.iza.org/publications/dp10765
        AB  - Mexico's 'soda tax' has been predicted to reduce average weights by two to four pounds, based on extant estimates of an own-price elasticity of quantity demand for soda of between −1.0 and −1.3. These estimates ignore consumer responses on the quality margin and correlated measurement errors. We use Mexican household budget survey data and city-level soda prices to estimate unrestricted demand models that correct for both errors. The corrected own-price elasticity of quantity demand is just −0.2 to −0.3, so tax-induced soda price increases might cut average weights by less than one pound, which is too small to improve health. 
        KW  - demand
KW  - household surveys
KW  - quality
KW  - price
KW  - soda taxes
KW  - Mexico
        ER  -