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Arturo Jose Galindo
''Where to sell the next cappuccino? Income per capita and coffee consumption''
( 2011, Vol. 31 No.3 )
This paper estimates the world demand for coffee using a dataset for 88 countries from 1990 to 2005, and dynamic panel data estimators. Results suggest that the income elasticity of demand is non constant and varies according to a country's income level. Higher income countries have lower income elasticities than middle and low income ones. Differences in price elasticities are not significant across income groups.
Keywords: Coffee, Demand, Income, Price, Elasticity
JEL: Q1 - Agriculture: General
O1 - Economic Development: General
Manuscript Received : Jul 28 2011 Manuscript Accepted : Sep 21 2011

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