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  BMSW_EconInquiry_Data_code 06/03/2024 06:36:PM

Project Citation: 

Bauner, Christoph , Mohapatra, Debi Prasad, Streletskaya, Nadia , and Wang, Emily. ECIN Replication Package for “Unhealthy food, regulations, and consumer welfare: The US microwaveable popcorn market.” Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-06-03. https://doi.org/10.3886/E202182V2

Project Description

Summary:  View help for Summary Due to significant health concerns, governments across the world have taken measures to regulate dietary trans fat, e.g., through bans and ad-valorem taxes. We assess the effectiveness of these two strategies and measure their ensuing welfare implications. We estimate a structural demand and supply model for the microwavable popcorn market using NielsenIQ Homescan data. Applying the recovered consumer preferences and marginal costs, we find a ban and a 35% tax result in similar levels of welfare loss and trans fat reduction. A 10% tax can still significantly reduce trans fat consumption (around 48%), while the associated consumer welfare loss is substantially smaller.


Scope of Project

JEL Classification:  View help for JEL Classification
      I18 Health: Government Policy; Regulation; Public Health
      L13 Oligopoly and Other Imperfect Markets
      L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
Manuscript Number:  View help for Manuscript Number ECIN-Jun-2023-0257


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