Journal of Agricultural and Resource Economics
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Taxes on sugar-sweetened beverages have been widely proposed to combat the U.S. obesity crisis. Most previous work has found the effects of a SSB tax to be small to moderate. We address three limitations. First, we incorporate the supply side via a stochastic equilibrium displacement model. Second, we account for uncertainty elasticities using probability distributions associated with elasticities. Third, we address industry revenue effects. We find that assumptions about the supply side are more important than assumptions about substitution. ignoring supply side severely overestimates quantity and calorie effects and slightly underestimated revenue effects.
This study examines the impact of consumers’ use of food labels on selected nutrient intakes of Americans. Endogenous switching regression techniques are employed to control for heterogeneity in the label use decision. When the nutrient intakes of label users and the expected nutrient intakes of label users in the absence of labels are compared, food label use decreases individuals’ average daily intakes of calories from total fat and saturated fat, cholesterol, and sodium by 6.90%, 2.10%, 67.60 milligrams, and 29.58 milligrams, respectively. In addition, consumer nutrition label use increases average daily fiber intake by 7.51 grains.
The Rotterdam model is used to obtain estimates of demand parameters for meat products in Taiwan, South Korea, and Japan. Unlike most previous studies of demand systems, the model takes into account simultaneous-equation bias which arises due to the endogeneity of total expenditure. Beef, pork, and chicken are separable from marine products for each Pacific Rim country. However, demand elasticities for beef, pork, and chicken are different among the various Pacific Rim nations. One may not then use the elasticity estimates of a particular country and apply them to other Pacific Rim markets.
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