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GLP-1 Use and Protein Demand

Author

Listed:
  • Bina, Justin D.
  • Tonsor, Glynn T.
  • Richards, Timothy J.

Abstract

The use of glucagon-like peptide-1 (GLP-1) receptor agonists for weight loss is reshaping food demand, particularly for protein. This research estimates how GLP-1 use alters protein demand curves using methods of causal inference applied to structural demand modeling. Data from a public survey are balanced via matching to address endogenous selection into GLP-1 treatment. Demand shifts and rotations are then estimated using a discrete choice model and an Almost Ideal Demand System. GLP-1 use increases willingness-to-pay for most evaluated protein products, though the effects vary by product and outlet. Own-price elasticities for several retail products become up to 0.22 more inelastic. Our findings of shift effects of GLP-1 use on protein demand indicate externalities that are internal to the U.S. food system and that extend beyond simple consumption changes.

Suggested Citation

Handle: RePEc:ags:assa26:379045
DOI: 10.22004/ag.econ.379045
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File URL: https://ageconsearch.umn.edu/record/379045/files/McCluskey_Bina_Tonsor_Richards_GLP-1%20Manuscript_AgEcon.pdf
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