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WIC Household Food Purchases Using WIC Benefits or Paying Out of Pocket: A Case Study of Cold Cereal Purchases

Author

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  • Dong, Diansheng
  • Stewart, Hayden
  • Frazão, Elizabeth
  • Carlson, Andrea
  • Hyman, Jeffrey

Abstract

USDA’s Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is the Nation’s third-largest food and nutrition assistance program. WIC partici - pants receive Food Instruments they can exchange for foods like infant formula, milk, fruit juice, whole-grain bread, and cold cereal at authorized retail stores. Since partici - pants incur no out-of-pocket costs when purchasing WIC foods, they may be less sensitive to prices when choosing among allowed food items. In this study, we analyze household purchases of cold cereals. Findings show that WIC households buy less costly cereals than non-WIC households, all else constant, when paying out of pocket. Not surprisingly, they purchase with relatively less regard to price when using their WIC benefits, which may increase the program’s food costs. Findings also suggest that some restrictions imposed by WIC State agencies on brands and package sizes may help contain program costs. However, it may also be possible to develop incentives that encourage participants to purchase lower cost products without the negative impact that restrictions may have on participant satisfaction and program participation.

Suggested Citation

  • Dong, Diansheng & Stewart, Hayden & Frazão, Elizabeth & Carlson, Andrea & Hyman, Jeffrey, 2016. "WIC Household Food Purchases Using WIC Benefits or Paying Out of Pocket: A Case Study of Cold Cereal Purchases," Economic Research Report 262197, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:262197
    DOI: 10.22004/ag.econ.262197
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    References listed on IDEAS

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    1. Kaufman, Phillip R., 2003. "Assessment Of Wic Cost-Containment Practices: Food Assistance Research Brief," Food Assistance and Nutrition Research Reports 33855, United States Department of Agriculture, Economic Research Service.
    2. Oliveira, Victor & Frazao, Elizabeth, 2015. "The WIC Program: Background, Trends, and Economic Issues, 2015 Edition," Economic Information Bulletin 197543, United States Department of Agriculture, Economic Research Service.
    3. Oliveira, Victor & Frazao, Elizabeth, 2009. "The WIC Program: Background, Trends, and Economic Issues, 2009 Edition," Economic Research Report 55839, United States Department of Agriculture, Economic Research Service.
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    5. Davis, David E. & Leibtag, Ephraim S., 2005. "Interstate Variation In Wic Food Package Costs: The Role Of Food Prices, Caseload Composition, And Cost-Containment Practices," Food Assistance and Nutrition Research Reports 33811, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Stewart, Hayden & Hyman, Jeffrey & McLaughlin, Patrick W. & Dong, Diansheng, 2019. "USDA Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): A New Look at Key Questions 10 Years After USDA Added Whole-Grain Bread to WIC Food Packages in 2009," Economic Research Report 335303, United States Department of Agriculture, Economic Research Service.
    2. McLaughlin, Patrick W. & Gleason, Stacy & Wilkin, Margaret, 2018. "Price Variability Across Food Product and Vendor Type in Food Benefit Redemptions Under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)," Economic Research Report 276225, United States Department of Agriculture, Economic Research Service.
    3. Rickertsen, K. & Gustavsen, G.W. & Nayga, R.M. & Dong, D., 2018. "Acculturation in Food Choices among U.S. Immigrants," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277041, International Association of Agricultural Economists.
    4. Qi Zhang & Chuanyi Tang & Patrick W. McLaughlin & Leigh Diggs, 2017. "Individual and Store Characteristics Associated with Brand Choices in Select Food Category Redemptions among WIC Participants in Virginia," IJERPH, MDPI, vol. 14(4), pages 1-10, March.
    5. Elina T Page & Elizabeth Larimore & John A Kirlin & Mark Denbaly, 2019. "The National Household Food Acquisition and Purchase Survey: Innovations and Research Insights," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 215-234, June.
    6. Stewart, Hayden & Dong, Diansheng, 2018. "How strong is the demand for food through direct-to-consumer outlets?," Food Policy, Elsevier, vol. 79(C), pages 35-43.

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