Current Economic Initiatives
- Price elasticity of food demand and implications for food policy
- Applications of prospect theory to food behavior: the relationship between dietary restraint, loss aversion and perceived risk
- Assessing the effect of increasing housing costs on food insecurity
- Comparing price and availability of healthful food in poor and wealthy neighborhoods
1. Price elasticity of food demand and implications for food policy
In order to use taxation and food subsidies as mechanisms for improving individuals’ food choices, policy makers must understand how consumer demand for foods and beverages fluctuates with price. Our study will review and synthesize empirical evidence on the elasticity of demand for food products in the U.S.
2. Applications of prospect theory to food behavior: the relationship between dietary restraint, loss aversion and perceived risk
Previous research on the economics of obesity and food choices has focused on the causes of obesity and the macroeconomic effects of food policy, rather than on consumer preferences. This study will fill the gap by analyzing overeating within the framework of economic and consumer behavioral models. We will investigate the relationship between eating behavior, preferences for gains and losses, and perceived risk of overeating-related health conditions. The study applies “prospect theory” and perceived-risk measures to the examination of overeating behavior.
3. Assessing the effect of increasing housing costs on food insecurity
We are collaborating with two health economists from the Yale School of Public Health, Jason Fletcher and Susan Busch, who are serving as principle investigators for a study on the impact of housing costs on food security. The study uses data from the Early Childhood Longitudinal Study, Birth Cohort dataset (ECLS-B 2001-2005) and applies household fixed effect models. We also hope to assess whether social programs mitigate the effect of housing cost changes on food insecurity.
4. Comparing price and availability of healthful food in poor and wealthy neighborhoods
Disadvantaged populations often live in areas with limited access to fresh, nutritious foods, and may face higher food prices than residents of more affluent communities. In this study we compared availability, price and quality of healthful foods in retail stores across low and high socioeconomic status (SES) neighborhoods of New Haven, Connecticut.