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Cash Incentives and Unhealthy Food Consumption

Flores Sandoval, M and Rivas, J (2017) Cash Incentives and Unhealthy Food Consumption Bulletin of Economic Research, 69 (1). pp. 42-56.

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Abstract

This paper studies the effectiveness of taxes, subsidies and cash incentives in reducing unhealthy food consumption. Using an inter-temporal rational choice model with habit, we calibrate and simulate the effect of those policies to US and UK data. Our findings suggest that cash incentives may be the most effective policy in reducing unhealthy food consumption. However, when comparing the reduction in costs for the social security system with the implementation costs, cash incentives can lead to significant monetary losses. Taxes are relatively ineffective in reducing unhealthy food consumption. Finally, subsidies have the best balance between effectiveness and monetary benefits to society.

Item Type: Article
Subjects : Economics
Divisions : Faculty of Arts and Social Sciences > School of Economics
Authors :
AuthorsEmailORCID
Flores Sandoval, MUNSPECIFIEDUNSPECIFIED
Rivas, JUNSPECIFIEDUNSPECIFIED
Date : 9 January 2017
Identification Number : https://doi.org/10.1111/boer.12085
Copyright Disclaimer : © 2016 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd
Uncontrolled Keywords : Habit, Junk food, Overweight, Public policy, Rational addiction, D04, D11, H31
Depositing User : Symplectic Elements
Date Deposited : 07 Mar 2017 11:44
Last Modified : 07 Mar 2017 11:44
URI: http://epubs.surrey.ac.uk/id/eprint/813704

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