Food Labeling Policies: Aggregate Impacts and Heterogeneity Across Categories
Nano Barahona,
Cristóbal Otero (),
Sebastián Otero and
Joshua J. Kim
No 35737, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
We study the aggregate and heterogeneous effects of a front-of-package labeling policy implemented in Chile. We find that consumers reduced their sugar and caloric intake by 9% and 6%, respectively. On the demand side, labels prompt consumers to substitute within categories rather than switching between categories. Within-category responses are more pronounced when labels provide new information. On the supply side, we observe bunching at regulatory thresholds, with substantial heterogeneity across categories, consistent with differing costs of product reformulation. We conclude that considering policy-response heterogeneity is key for effective policy design.
JEL-codes: D12 D22 I12 I18 L11 L81 (search for similar items in EconPapers)
Date: 2026-09
Note: EH IO PE
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