Analyzing Wine Demand with Artificial Neural Networks
Margherita Gerolimetto, Christine Mauracher and Isabella Procidano
Journal of Wine Economics, Vol. 3, No. 1, 30-50
Abstract
In this paper we analyse wine demand in Italy with microdata. Instead of estimating a parametric model, we study the demand following a non parametric approach by means of Artificial Neural Networks. The input set includes the usual economic variables (price and income) and some socio-demographic factors that are also shown to be relevant for demand analysis. We compute price elasticities using two different nonparametric procedures.