A Demand Analysis of the Korean Wine Market Using an
Unrestricted Source Differentiated LA/AIDS Model
Youngjae Lee, P. Lynn Kennedy and Brian M. Hilbun
Journal of Wine Economics, Vol. 4, No. 2, 185-200
Abstract
An unrestricted source differentiated LA/AIDS model was used to estimate Korean wine demand.In doing so, this study tested the null hypotheses of product aggregation, block separability and substitutability. The test results show that the unrestricted source differentiated model is significantly different from the aggregated model, separated model, and restricted source differentiated model at the conventional level. By using this system-wide model, this study estimated price and expenditure elasticities to identify the price effect on Korean wine consumption. (JEL Classification: F10, F11, F13)