How Long Do Healthy Habits Last? The Role of Prices

45 Pages Posted: 26 Mar 2018

Date Written: March 2018

Abstract

When a policy gives temporary incentives for healthy behaviors, how long does the impact last? I study the U.S. Special Supplemental Nutrition Program for Women, Infants, and Children, which gives vouchers for healthy foods. Using household-level scanner data, I find that the effect of the program diminishes when households become ineligible. Demand model estimates show that price differences between healthy and unhealthy foods play a large role in the decrease of the program's impact. The estimates imply that the program has a persistent effect, in that it increases the impact of subsequent policies like subsidies on healthy foods.

Keywords: Consumer behavior, dietary choices, long-term policy effects

JEL Classification: D12, I12, I38, L66

Suggested Citation

Hinnosaar, Marit, How Long Do Healthy Habits Last? The Role of Prices (March 2018). CEPR Discussion Paper No. DP12815, Available at SSRN: https://ssrn.com/abstract=3149489

Marit Hinnosaar (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

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