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Economic Incentives For Dietary Improvement Among Food Stamp Recipients

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  • BIING‐HWAN LIN
  • STEVEN T. YEN
  • DIANSHENG DONG
  • DAVID M. SMALLWOOD

Abstract

Most Americans need to consume more fruits, vegetables, and dairy products. This need is particularly acute among low‐income individuals. This study examines 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 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%–0.40%. (JEL C34, D12, Q18)

Suggested Citation

  • Biing‐Hwan Lin & Steven T. Yen & Diansheng Dong & David M. Smallwood, 2010. "Economic Incentives For Dietary Improvement Among Food Stamp Recipients," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 524-536, October.
    • Handle: RePEc:bla:coecpo:v:28:y:2010:i:4:p:524-536
    DOI: 10.1111/j.1465-7287.2009.00193.x
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    Cited by:

    1. 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, Boston, Massachusetts 235324, Agricultural and Applied Economics Association.
    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), pages 1-21.
    3. Sanjay Basu & Hilary Seligman & Jay Bhattacharya, 2013. "Nutritional Policy Changes in the Supplemental Nutrition Assistance Program," Medical Decision Making, , vol. 33(7), pages 937-948, October.
    4. 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.
    5. 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.
    6. Alyssa J. Moran & Yuxuan Gu & Sasha Clynes & Attia Goheer & Christina A. Roberto & Anne Palmer, 2020. "Associations between Governmental Policies to Improve the Nutritional Quality of Supermarket Purchases and Individual, Retailer, and Community Health Outcomes: An Integrative Review," IJERPH, MDPI, vol. 17(20), pages 1-23, October.
    7. repec:lic:licosd:28011 is not listed on IDEAS
    8. 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.
    9. 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.
    10. Steele, Marie & Weatherspoon, Dave, 2016. "Demand for Varied Fruit and Vegetable Colors," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235912, Agricultural and Applied Economics Association.
    11. Senia, Mark C. & Dharmasena, Senarath & Todd, Jessica E., 2018. "A Complex Model of Consumer Food Acquisitions: Applying Machine Learning and Directed Acyclic Graphs to the National Household Food Acquisition and Purchase Survey (FoodAPS)," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266536, Southern Agricultural Economics Association.

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    More about this item

    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; Animal Welfare Policy

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