Do the Poor Pay More for Food?

Timothy Beatty

American Journal of Agricultural Economics, 2010, vol. 92, issue 3, 608-621

Abstract: Does food cost more for low-income households? This paper compares two well-known approaches to answering this question. I find that quantity discounts for a broad range of foods are statistically significant and economically important. However quantity discounting does not lead to the poor paying more for food. I find that the poor pay less than average for the food they purchase. This is explained by the poor spending a greater share of their income on foods where quantity discounting occurs. Copyright 2010, Oxford University Press.

Date: 2010
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