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Abstract

The effects on purchases of ice cream of increasing the value added tax (VAT) for less healthy foods and removing the VAT for healthy foods are estimated. The effects on high- and low-purchasing households are estimated by using quantile regressions. Many households did not purchase ice cream and censored quantile regressions are estimated by a recently developed algorithm, which is simple, robust, and performs well near the censoring point. High-purchasing households will reduce their annual per capita purchases with 1.8 kilograms corresponding to an annual reduction of more than half a kilogram of body weight.

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