Journal
AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS
Volume 92, Issue 1, Pages 228-245Publisher
WILEY
DOI: 10.1093/ajae/aap004
Keywords
AI demand system; cohort; fat tax policy; household survey data; missing data; nutrient elasticities
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This article assesses the effects of a fat tax on the nutrients purchased by French households across different income groups. This is done by making a preliminary estimation of price elasticities using a complete demand system on household scanner data, and by calculating nutrient elasticities using estimated price elasticities. We find that a fat tax has small and ambiguous effects on nutrients purchased by French households, and a slight effect on body weight in the short run, with a greater effect in the long run. Such a tax generates substantial tax revenue, but is highly regressive.
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