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The Effects of a Fat Tax on French Households' Purchases: A Nutritional Approach

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  • Olivier Allais
  • Patrice Bertail
  • Véronique Nichèle

Abstract

This article assesses the effects of a "fat tax" on the nutrients purchased by French households across different income groups. This is done by making a preliminary estimation of price elasticities using a complete demand system on household scanner data, and by calculating nutrient elasticities using estimated price elasticities. We find that a fat tax has small and ambiguous effects on nutrients purchased by French households, and a slight effect on body weight in the short run, with a greater effect in the long run. Such a tax generates substantial tax revenue, but is highly regressive. Copyright 2010, Oxford University Press.

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  • Olivier Allais & Patrice Bertail & Véronique Nichèle, 2010. "The Effects of a Fat Tax on French Households' Purchases: A Nutritional Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 228-245.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:1:p:228-245
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