China's admission in the WTO and commitment to cut tariffs on alcohol related goods provide a considerable opportunity for the USA, Europe and other countries. The present study examines Chinese consumer behaviour with regard to alcoholic beverages (wine, wine cooler and beer) using a Chinese household survey data. The results show that beer and wine cooler are normal goods while wine is still a luxury good in China. The price elasticities of wine and wine cooler are larger than that of beer.
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Pan et al. (2006) studied this question.
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