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Does Limited Access at School Result in Compensation at Home?-The Effect of Soft Drink Bans in Schools on Purchase Patterns outside of Schools

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  • Huang, Rui
  • Kiesel, Kristin

Abstract

This paper investigates the effects of banning soft drinks in schools on purchases outside of school. We utilize unique household-level and store-level data sources in combination with time-series and cross-sectional variation of state-level regulations in a difference-in-differences(DD) approach. We detect a decrease in the overall trend in sales, but observe this downward trend in households with and without children, as well as in states with and without regulation. Controlling for advertising allows us to further reject that leading brands intensify their advertising efforts and target children to potentially offset their reduced presence at schools. Finally, we find no evidence of substitution effects among possible beverage product alternatives. Our analysis therefore suggests that soft drink bans at school reduce overall soft drink consumption as school age children do not compensate for this limited availability at home.

Suggested Citation

  • Huang, Rui & Kiesel, Kristin, 2010. "Does Limited Access at School Result in Compensation at Home?-The Effect of Soft Drink Bans in Schools on Purchase Patterns outside of Schools," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61593, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61593
    DOI: 10.22004/ag.econ.61593
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    References listed on IDEAS

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    1. Vartanian, L.R. & Schwartz, M.B. & Brownell, K.D., 2007. "Effects of soft drink consumption on nutrition and health: A systematic review and meta-analysis," American Journal of Public Health, American Public Health Association, vol. 97(4), pages 667-675.
    2. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    3. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
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