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A Spoonful of Sugar Helps the Medicine Go Down: the Relationship Between Food Prices and Medical Expenditures on Diabetes

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  • Chad D. Meyerhoefer
  • Ephraim S. Leibtag

Abstract

We investigate the impact of changes in the relative price of low- and high-carbohydrate foods on medical expenditures for diabetes care using Nielsen Homescan price data merged to the 2000--2005 Medical Expenditure Panel Survey. We find that an increase in low-(high-)carbohydrate food price increases (decreases) both the likelihood of a diabetes diagnosis and the level of medical expenditures among those with diabetes. We also find small impacts of food prices on body mass index that differ by gender. Policy simulations suggest that subsidizing the low-carbohydrate food purchases of people with diabetes could result in significant reductions in health care costs. Copyright 2010, Oxford University Press.

Suggested Citation

  • Chad D. Meyerhoefer & Ephraim S. Leibtag, 2010. "A Spoonful of Sugar Helps the Medicine Go Down: the Relationship Between Food Prices and Medical Expenditures on Diabetes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1271-1282.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:5:p:1271-1282
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    File URL: http://hdl.handle.net/10.1093/ajae/aaq064
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    Cited by:

    1. Rahkovsky, Ilya & Gregory, Christian A., 2013. "Food prices and blood cholesterol," Economics & Human Biology, Elsevier, vol. 11(1), pages 95-107.
    2. 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.
    3. Thapaliya, Sudha & Interis, Matthew G. & Collart, Alba J. & Walters, Lurleen & Morgan, Kimberly L., 2014. "Health Motivation for Purchasing Local Foods in the Southeastern United States," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196803, Southern Agricultural Economics Association.
    4. Chang, Hung-Hao & Meyerhoefer, Chad D., 2019. "Inter-brand competition in the convenience store industry, store density and healthcare utilization," Journal of Health Economics, Elsevier, vol. 65(C), pages 117-132.
    5. Mays, Matthew & Smith, Travis A., 2018. "How Does SNAP Participation Affect Rates of Diabetes?," 2018 Annual Meeting, August 5-7, Washington, D.C. 273905, Agricultural and Applied Economics Association.

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