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Abstract

This article assesses the effects of a "fat tax" on the nutrient intake of French households across different income groups using a method that estimates the nutrient elasticities of French households. We estimate a complete demand system by aggregating an individual demand system over cohorts. The use of a cohort model is justified by the incompleteness of our data. We find that a "fat tax" would have ambiguous and extremely small effects on the nutrient intake of French households, and its associated economic welfare costs would be similarly weak.

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