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A short term econometric model for the consumer demand of roasted coffee in the Netherlands

In this paper a model will be specified and tested for the consumer demand of roasted coffee in the Netherlands for the period from January 1970 to February 1979, using monthly data. The stability of the model will receive special attention because of the heavy price movements in 1976/'77. Also the irreversibility of the demand function will be investigated: do price increases result in greater changes in demand than price decreases. The conclusion is that this occurs and also that the specified model is acceptable for the entire sample period.