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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%.

Suggested Citation

  • Lin, Biing-Hwan & Yen, Steven T. & Dong, Diansheng & Smallwood, David M., 2009. "Economic Incentives For Dietary Improvement Among Food Stamp Recipients," 2009 Pre-Conference Workshop, August 16, 2009, Diet and Obesity: Role of Prices and Policies 53339, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae9p:53339
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    Cited by:

    1. Steven T. Yen & Andrew K.G. Tan & Rodolfo M. Nayga Jr, 2011. "Determinants of fruit and vegetable consumption in Malaysia: an ordinal system approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(2), pages 239-256, April.
    2. Kasteridis, Panagiotis & Yen, Steven, 2012. "U.S. demand for organic and conventional vegetables: a Bayesian censored system approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(3), September.
    3. 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.
    4. Steven Yen & Andrew Tan, 2012. "Who are eating and not eating fruits and vegetables in Malaysia?," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 57(6), pages 945-951, December.
    5. 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.
    6. Steele, Marie & Weatherspoon, Dave, 2016. "Demand for Varied Fruit and Vegetable Colors," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235912, Agricultural and Applied Economics Association.
    7. Lin, Biing-Hwan & Dong, Diansheng & Carlson, Andrea & Rahkovsky, Ilya, 2017. "Potential dietary outcomes of changing relative prices of healthy and less healthy foods: The case of ready-to-eat breakfast cereals," Food Policy, Elsevier, vol. 68(C), pages 77-88.
    8. Wilson, Norbert L. W. & Zheng, Yuqing & Burney, Shaheer & Kaiser, Harry M., 2016. "Do Grocery Food Sales Taxes Cause Food Insecurity?," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235324, Agricultural and Applied Economics Association.

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    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;

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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