The Impact of Tax Reforms Designed to Encourage a Healthier Grain Consumption
AbstractIn this paper, we simulate the effects of taxes on products and/or nutrients aimed at encouraging a healthier grain consumption. To carry out the analysis, we use a rich data set on household consumption of grain products, combined with information about the nutritional content of the products. We estimate behavioural parameters that are used to simulate the impact on the average household of different types of tax reforms; entailing either a subsidy on commodities particularly rich in fibre or a subsidy of the fibre density in grain products. Our results suggest that to direct the fibre intake of the average household towards nutritional recommendations, reforms with a substantial impact on consumer prices are required. Our results also imply that subsidizing the fibre density is more cost-efficient than reducing the VAT on commodities rich in fibre. Regardless of the type of subsidy imposed, the increase in the fibre intake is accompanied by unwanted increases in the nutrients that are often over consumed; fat, saturated fat, salt and sugar and added sugar. Funding the subsidies by taxing these nutrients, or less healthy commodities, prevents such developments.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by HUI Research in its series HUI Working Papers with number 11.
Length: 44 pages
Date of creation: 06 Nov 2007
Date of revision:
Publication status: Published as Nordström, Jonas and Linda Thunström, 'The Impact of Tax Reforms Designed to Encourage a Healthier Grain Consumption' in Journal of Health Economics, 2009, pages 622-634.
Contact details of provider:
Postal: HUI Research, Regeringsgatan 60, 103 29 Stockholm, Sweden
Phone: +46 (0)8 762 72 80
Fax: +46 (0)8 679 76 06
Web page: http://www.hui.se/
More information through EDIRC
Consumer economics; food; health; taxation;
Other versions of this item:
- Nordström, Jonas & Thunström, Linda, 2009. "The impact of tax reforms designed to encourage healthier grain consumption," Journal of Health Economics, Elsevier, vol. 28(3), pages 622-634, May.
- Nordström, Jonas & Thunström, Linda, 2007. "The Impact of Tax Reforms Designed to Encourage a Healthier Grain Consumption," UmeÃ¥ Economic Studies 717, Umeå University, Department of Economics.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leung, Siu Fai & Yu, Shihti, 1996.
"On the choice between sample selection and two-part models,"
Journal of Econometrics,
Elsevier, vol. 72(1-2), pages 197-229.
- Leung, S.F. & Yu, S., 1992. "On the Choice Between Sample Selection and Two-Part Models," RCER Working Papers 337, University of Rochester - Center for Economic Research (RCER).
- David L. Edgerton, 1997. "Weak Separability and the Estimation of Elasticities in Multistage Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 62-79.
- Srinivasan, C.S. & Irz, Xavier & Shankar, Bhavani, 2006.
"An assessment of the potential consumption impacts of WHO dietary norms in OECD countries,"
Elsevier, vol. 31(1), pages 53-77, February.
- Srinivasan, Chittur S. & Shankar, Bhavani & Irz, Xavier T., 2005. "An Assessment of the Potential Consumption Impacts of WHO Dietary Norms in OECD Countries," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24564, European Association of Agricultural Economists.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
- Breunig, Robert & Dasgupta, Indraneel & Gundersen, Craig & Pattanaik, Prasanta, 2001. "Explaining The Food Stamp Cash-Out Puzzle," Food Assistance and Nutrition Research Reports 33869, United States Department of Agriculture, Economic Research Service.
- Ted O'Donoghue & Matthew Rabin, 2003. "Studying Optimal Paternalism, Illustrated by a Model of Sin Taxes," American Economic Review, American Economic Association, vol. 93(2), pages 186-191, May.
- Chouinard Hayley H & Davis David E & LaFrance Jeffrey T & Perloff Jeffrey M, 2007. "Fat Taxes: Big Money for Small Change," Forum for Health Economics & Policy, De Gruyter, vol. 10(2), pages 1-30, June.
- James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
- Young, C. Edwin & Kantor, Linda Scott, 1999. "Moving Toward the Food Guide Pyramid: Implications for U.S. Agriculture," Agricultural Economics Reports 34071, United States Department of Agriculture, Economic Research Service.
- Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Deaton, Angus & Irish, Margaret, 1984. "Statistical models for zero expenditures in household budgets," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 59-80.
- Blundell, Richard W & Walker, Ian, 1982. "Modelling the Joint Determination of Household Labour Supplies and Commodity Demands," Economic Journal, Royal Economic Society, vol. 92(366), pages 351-64, June.
- Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-97, June.
- Schroeter, Christiane & Lusk, Jayson & Tyner, Wallace, 2008. "Determining the impact of food price and income changes on body weight," Journal of Health Economics, Elsevier, vol. 27(1), pages 45-68, January.
- James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
- Kenkel, Donald S. & Manning, Willard, 1999. "Economic evaluation of nutrition policy: Or, there's no such thing as a free lunch," Food Policy, Elsevier, vol. 24(2-3), pages 145-162, May.
- Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
- Duvaleix-Treguer, Sabine & Hammoudi, Hakim & Rouached, Lamia & Soler, Louis-Georges, 2010.
"Firms’ Responses To Nutritional Policies,"
115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany
116399, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
- Kaisa Kotakorpi & Pirjo Pietinen & Jukka Pirttila & Heli Reinivuo & Ilpo Suoniemi, 2012.
"The Welfare Effects of Health-Based Food Tax Policy,"
81, Aboa Centre for Economics.
- Kaisa Kotakorpi & Tommi Härkänen & Pirjo Pietinen & Heli Reinivuo & Ilpo Suoniemi & Jukka Pirttilä, 2011. "The Welfare Effects of Health-based Food Tax Policy," CESifo Working Paper Series 3633, CESifo Group Munich.
- Nordström, Jonas & Thunström, Linda, 2011.
"Can targeted food taxes and subsidies improve the diet? Distributional effects among income groups,"
HUI Working Papers
44, HUI Research.
- Nordström, Jonas & Thunström, Linda, 2011. "Can targeted food taxes and subsidies improve the diet? Distributional effects among income groups," Food Policy, Elsevier, vol. 36(2), pages 259-271, April.
- Nordström, Jonas & Thunström, Linda, 2010. "Can targeted food taxes and subsidies improve the diet? Distributional effects among income groups," Working Papers 2010:11, Lund University, Department of Economics.
- Jensen, Jørgen Dejgård & Smed, Sinne, 2013. "The Danish tax on saturated fat – Short run effects on consumption, substitution patterns and consumer prices of fats," Food Policy, Elsevier, vol. 42(C), pages 18-31.
- Capacci, Sara & Mazzocchi, Mario, 2011. "Five-a-day, a price to pay: An evaluation of the UK program impact accounting for market forces," Journal of Health Economics, Elsevier, vol. 30(1), pages 87-98, January.
- Gustavsen, Geir Wæhler & Rickertsen, Kyrre, 2013. "Adjusting VAT rates to promote healthier diets in Norway: A censored quantile regression approach," Food Policy, Elsevier, vol. 42(C), pages 88-95.
- Ehmke, Mariah D. & Willson, Tina M. & Schroeter, Christiane & Hart, Ann Marie & Coupal, Roger H., 2009. "Obesity Economics for the Western United States," Western Economics Forum, Western Agricultural Economics Association, vol. 8(02).
- Darmon, N. & Lacroix, A. & Muller, L. & Ruffieux, B., 2011. "Experimental economics shows how food price policies may improve diet while increasing socioeconomic inequalities in nutrition," Working Papers 201104, Grenoble Applied Economics Laboratory (GAEL).
- Ryota Nakamura & Marc Suhrcke & Daniel John Zizzo, 2014. "A Triple Test for Behavioral Economics Models and Public Health Policy," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 14-01, School of Economics, University of East Anglia, Norwich, UK..
- Nordström, Jonas & Thunström, Linda, 2009.
"Economic Policies for Healthier Food Intake: The Impact on Different Household Categories,"
2009:14, Lund University, Department of Economics.
- Jonas Nordström & Linda Thunström, 2011. "Economic policies for healthier food intake: the impact on different household categories," The European Journal of Health Economics, Springer, vol. 12(2), pages 127-140, April.
- Nordström, Jonas & Thunström, Linda, 2009. "The Impact on Different Household Types of Economic Policies Designed to Increase the Fiber Intake from Grain Consumption," HUI Working Papers 22, HUI Research.
- Irz, Xavier & Leroy, Pascal & Réquillart, Vincent & Soler, Louis-Georges, 2014. "Economic assessment of nutritional recommendations," TSE Working Papers 14-473, Toulouse School of Economics (TSE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Nilsson).
If references are entirely missing, you can add them using this form.