Habit persistence in food purchases

ABSTRACT

Taxes are often imposed on sugary products to decrease consumption and thus lower obesity. Reducing purchases of food products may be difficult if they are habit forming and thus addictive. Food products may also be durable and provide service flows if individuals become satiated or stockpile goods. Estimates find sugar, sweets, cereals, and bakery products to be net habit forming and highly addictive. Meat and poultry are also highly habit-forming goods. Healthier substitutes like fresh fruits, vegetables, fish, and seafood have the lowest estimates of net habit formation and further highlight the difficulty of reducing obesity through encouraging a healthier diet.

KEYWORDS:

• Habit persistence
• durability
• food expenditure
• demand system

JEL CLASSIFICATION:

• E21
• C30

Disclosure statement

No potential conflict of interest was reported by the author(s).