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IMPROVING FOOD CHOICES AMONG SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM RECIPIENTS
Author(s) -
You Wen,
Mitchell Paul D.,
Nayga Rodolfo M.
Publication year - 2012
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.1758
Subject(s) - incentive , supplemental nutrition assistance program , business , incentive program , food choice , principal (computer security) , public economics , marketing , actuarial science , environmental health , economics , medicine , food insecurity , food security , microeconomics , computer science , agriculture , ecology , pathology , biology , operating system
SUMMARY We used a principal–agent framework to examine the feasibility of two proposed modifications to the Supplemental Nutrition Assistance Program with the goal of encouraging healthier food choices among program participants. Specifically, we analyzed two types of contract: a restricted contract and an incentive contract. The restricted contract did not allow the purchase of unhealthy foods with program benefits, but compensated participants by increasing total benefits. The incentive contract provided increased benefits that varied according to the percentage of healthy foods purchased with program benefits. The theoretical results revealed the mechanisms for the two alternative contracts, the conditions under which each would be effective, and the key empirical questions to be examined for future policy analysis. Copyright © 2011 John Wiley & Sons, Ltd.