Research

Abstract: This study examines the incidence of county-level grocery sales taxes across the United States from 2010-2019. We find substantial grocery tax over-shifting to consumers. On average, a grocery tax that generates $1 in government revenue leads to a $1.25 rise in tax-inclusive consumer food prices. This tax over-shifting is even higher for lower-income households and shoppers at discount and dollar stores. The grocery tax incidence varies significantly among foods, with over-shifting highest for perishable staples. The windfall revenue arising from grocery tax over-shifting does not translate into increased earnings for food retail workers nor higher prices received by farmers.

Abstract: In this study, we employ Nielsen Retail Scanner Data for shelf-stable fluid milk over a 12-month period in 2013, leveraging the reduction of the state grocery tax on July 1st in Tennessee, West Virginia, and Kansas as the event of interest. Through a Difference-in-Differences analysis, we investigate the treatment effect of the grocery tax reduction on retailers’ sales volumes and pricing for shelf-stable fluid milk. Our findings indicate that the reduction in grocery tax led to a decrease in price by 3.05% and an increase in sales volume by 8.87%. We attribute the price reduction to market power and the substitution effects across different channels. Our analysis reveals that the predominant negative impact on price comes from Food Stores, whereas Convenience Stores exhibit present a positive effect on pricing. Meanwhile, our results suggest that Drug Stores and Mass Merchandisers adopt a uniform pricing strategy.

Abstract: This study analyzed the impact of the sugar-sweetened beverage tax (SBT) on consumer purchasing behaviors by using Nielsen consumer panel data from Cook County, Illinois, from 2017 to 2018. Our research focused on the responses of different consumer groups—including SNAP recipients and general consumers—to various beverage types, such as sugar-sweetened (SSB) and artificially sweetened beverages (ASB). We employed Cook County as the treatment group and the other counties in Illinois as the control group. Results indicate that during the implementation of the SBT policy, total beverage volume sales in Cook County significantly decreased, but the effects of the policy diminished and disappeared by the second month after its repeal. Furthermore, regular consumers reduced their consumption of taxed beverages following the policy, while SNAP users showed a limited response to the sugar tax. This research reveals the differentiated impact of SBT across socio-economic backgrounds and provides empirical evidence for formulating public health policies.

Abstract: Though there is a large literature on the incidence of public redistributive transfers and the effectiveness of private food assistance programs, little empirical research exists that examines the possible channels that impact food availability through food pantries. This article examines empirical evidence for the effect of food prices on local private donations to food banks from grocery retailers. Results indicate that increases in food prices discourage grocery retailers from donating in both volume and quality terms, creating another mechanism through which food price increases may worsen local food security and reduce the dietary diversity of local food pantry users.

Abstract: This study assesses the effects of grocery prices on the dynamics of SNAP and food pantry usage in the six-county region in New York State. By examining how changes in grocery prices influence the utilization of the federal program (SNAP) and private providers (Food Bank of the Southern Tier), we can gain valuable insights unto the economic factors affecting among vulnerable populations living in this region. The anticipated outcomes provide a well-developed price index facilitating 1) demonstrate the participation in both programs correlated with the price change of specific grocery types; 2) monitor the rate at which beneficiaries exhaust their SNAP benefits and switch to food pantries, in response to fluctuations in grocery prices; 3) suggest strategic use of food pantries to complement SNAP redemption through product mixes in grocery stores.