Vol 9, No 1 (2021)

Impacts on U.S. Beer Production: Evidence from State Panel Data 2008-2019

Mitch Kunce

Abstract

Few studies have empirically examined the responsiveness of beer production to changes in factor inputs. This paper exploits a unique and expansive balanced panel of time-series, cross-section data from 2008-2019 to explore factor impacts on state level beer production. The examination relies heavily on the rich production function literature and uses the "first order condition" approach with respect to inputs. Two-way fixed-effects estimates suggest that, after controlling for latent state and year factors, rising labor costs, water supply costs, wastewater charges, and electricity rates negatively impact changes in state level brewery production year to year. Brewing history, brewery firm growth and recent brewery closures are also examined.

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Keywords

Beer production; Production function; Input costs.

Publication information

Volume 9, Issue 1
Year of Publication: 2021
ISSN: 1857 - 8721
Publisher: EDNOTERA

How to cite

Kunce, M.: Impacts on U.S. Beer Production: Evidence from State Panel Data 2008-2019. Journal of Applied Economics and Business, Vol 9, No. 1, 5-16. (2021)