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Comparing Alternative Economic Mechanisms To Increase Fruit and Vegetable Purchases

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  • Prell, Mark
  • Smallwood, David

Abstract

Participants in USDA's Supplemental Nutrition Assistance Program (SNAP) typically consume less than the amounts of fruits and vegetables (FVs) recommended by the Dietary Guidelines for Americans. The study considers three economic mechanisms to incentivize purchases of FVs: a bonus for FV spending; a rebate for FV spending; and a Cash Value Voucher (CVV) redeemable for FVs up to a fixed dollar amount. This USDA Economic Research Service (ERS) report uses neoclassical economics to provide a unifying conceptual framework for explaining the effects of these mechanisms, using simplified abstract models. In principle, all three mechanisms can increase FV purchases for the average SNAP consumer. Distributional effects matter in addition to average effects; SNAP consumers who purchase no FVs (in a typical month) can be a sizable subgroup that is important for analysis. For that subgroup, implementing a CVV tends to increase purchases by more than other mechanisms. If the nonpurchasing subgroup is a large proportion of SNAP households, a CVV also tends to be the mechanism that increases average FV purchases the most. If the subgroup is relatively small, a rebate or bonus may promote average FV purchases the most.

Suggested Citation

  • Prell, Mark & Smallwood, David, 2017. "Comparing Alternative Economic Mechanisms To Increase Fruit and Vegetable Purchases," Economic Information Bulletin 256715, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:256715
    DOI: 10.22004/ag.econ.256715
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    File URL: https://ageconsearch.umn.edu/record/256715/files/eib-170.pdf
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    References listed on IDEAS

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    1. Steven T. Yen & Biing-Hwan Lin & David M. Smallwood, 2003. "Quasi- and Simulated-Likelihood Approaches to Censored Demand Systems: Food Consumption by Food Stamp Recipients in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 458-478.
    2. repec:mpr:mprres:4560 is not listed on IDEAS
    3. Committee to Review the WIC Food Packages of which Barbara L. Devaney is a member, "undated". "WIC Food Packages: Time for a Change," Mathematica Policy Research Reports 989d259284974842a250546c8, Mathematica Policy Research.
    4. Jacob A. Klerman & Susan Bartlett & Parke Wilde & Lauren Olsho, 2014. "The Short-Run Impact of the Healthy Incentives Pilot Program on Fruit and Vegetable Intake," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1372-1382.
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    Cited by:

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