Pass-through and competition: the impact of soft drink taxes as seen through Mexican supermarkets

Latin American Economic Review

Table 3 Competitive barrier effects

	2 km radius
	(1)	(2)	(3)	(4)
	Soda	Juice	Sports drinks	Powder mix
Shifting parameter	1.13*** [0.019]	0.25*** [0.032]	1.55*** [0.109]	0.24*** [0.014]
Interaction (tax X competition)	− 0.05*** [0.016]	0.01 [0.027]	− 0.09 [0.119]	0.02 [0.012]
No. of observations	68,193	35,964	11,384	10,592
R-squared	0.305	0.011	0.114	0.148

	5 km radius
	(5)	(6)	(7)	(8)
	Soda	Juice	Sports drinks	Powder mix
Shifting parameter	1.13*** [0.024]	0.25*** [0.033]	1.55*** [0.122]	0.24*** [0.015]
Interaction (tax X competition)	− 0.03 [0.017]	− 0.02 [0.031]	− 0.06 [0.105]	0.01 [0.013]
No. of observations	68,193	35,964	11,384	10,592
R-squared	0.305	0.011	0.114	0.148

∆P_ijt = FE + α₁*IEPS₂₀₁₄ +δ₁ * Comp_j + δ₂ * (IEPS₂₀₁₄ * Comp_j) + u_ijt
Shifting parameter refers to the shifting magnitude in Mexican pesos. Standard errors are clustered by establishment and presented in brackets. ***p < 0.01, **p < 0.05, *p < 0.1. All regressions include interaction (Establishment-Specific X Product Type X Brand X Product Content) and monthly fixed effects (FE). In addition, all estimations include a dummy variable signaling 2012 prices