Healthy Dietary Choices in Distorted Food Environments

Roberto Pancrazi.

(University of Warwick).

Healthy Dietary Choices in Distorted Food Environments.

We analyze how distortions in the food market limit the achievement of a healthy diet. Using Nielsen data we document a novel pattern on the relationship between healthy diet and income. We then build and estimate a tractable general equilibrium model in which difference in diet across income can be determined by preferences and/or by economic factors. We estimate the model so that it is able to account for the relevant stylized facts and we use as laboratory to study which policies could enhance healthy diets across different income levels.

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