Working Paper: CEPR ID: DP12815
Authors: Marit Hinnosaar
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 Codes: D12; I12; L66; I38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| WIC assistance (I38) | healthier dietary choices (I12) |
| WIC assistance (I38) | purchases of low-fat milk (D18) |
| WIC assistance (I38) | purchases of whole wheat bread (D19) |
| purchases of low-fat milk (D18) | impact of subsequent policies (F68) |
| purchases of whole wheat bread (D19) | impact of subsequent policies (F68) |
| WIC assistance (I38) | change in tastes (D11) |
| change in tastes (D11) | smaller tax or subsidy needed (H23) |