The passing of the 21st Amendment to the United States Constitution
has given to individual states the authority to regulate the
sale, distribution and taxation of domestically produced wines, and
made the wine trade potentially significant as a means of augmenting
state revenues.
In the state of Oregon, table wines have been taxed at the rate
of 23 cents per gallon irrespective of origin. The objective of this
study has been to evaluate the nature and price elasticity of Oregon's
wholesale demand for California table wines with a view to determine
the effectiveness of the utilization of the tax.
The multiple regression analysis technique is the instrument
used in this determination. A two part statistical model was employed,
but the number of variables used had to be restricted because of
certain data limitations. Only 78 percent and 50 percent of variation
was explained in the price predicting and demand segments of the
model respectively.
The results of the statistical analysis indicated a positively
sloped demand curve. This rendered any application of the concept of
price elasticity of demand as a means of assessing how effective the
tax was being used meaningless.
In view of this, no recommendations have been made, but the
need for further research as more data become available has been
pointed out. / Graduation date: 1971
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/26510 |
| Date | 02 October 1970 |
| Creators | Berkeley, Errol Winston |
| Contributors | Johnston, Richard S. |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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