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Economic Incentives For Dietary Improvement Among Food Stamp Recipients

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  • Lin, Biing-Hwan
  • Yen, Steven T.
  • Dong, Diansheng
  • Smallwood, David M.

Abstract

Most Americans need to consume more fruits, vegetables, and dairy products. This need is particularly acute among low-income individuals. The objective of this study is to examine the cost effectiveness of two economic policies that use alternative policy levers available within the Supplemental Nutrition Assistance Program (formerly Food Stamp Program) to increase consumption of these under-consumed foods. Data from three nationally representative surveys are used to estimate demand elasticities, marginal propensity to spend on food out of food stamp benefits, and consumption amount of and spending on under-consumed foods among food stamp recipients. Results of the analyses suggest that a 10% price subsidy would curtail consumption deficiencies by 4–7% at an estimated cost of $734 million a year. When the same $734 million is used to finance food stamp benefits, consumption deficiencies are predicted to narrow by only 0.35 to 0.40%.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Pre-Conference Workshop, August 16, 2009, Diet and Obesity: Role of Prices and Policies with number 53339.

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Date of creation: Jun 2009
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Handle: RePEc:ags:iaae9p:53339

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Related research

Keywords: CEX; SNAP; Price subsidy; NHANES; NFSPS; Vegetables; Milk; Fruits; Food stamps; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; C34; D12; Q18;

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Cited by:
  1. Mikkel Barslund, 2011. "Censored Demand System Estimation with Endogenous Expenditures in clustered samples: an application to food demand in urban Mozambique," LICOS Discussion Papers 28011, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  2. Lin, Biing-Hwan & Smith, Travis A. & Lee, Jonq-Ying, 2010. "Effects of Taxing Sugar-Sweetened Beverage and Subsidizing Milk: Beverage Consumption, Nutrition, and Obesity among US Children," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116448, European Association of Agricultural Economists;Agricultural and Applied Economics Association.

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