Many developing countries use food-price subsidies or price controls to improve the nutrition of the poor. However, … consumers may then substitute towards foods with higher non-nutritional attributes (e.g., taste), but lower nutritional content per unit of currency. … We analyze data from a randomized program of large price subsidies for poor households in two provinces of China and find no evidence that the subsidies improved nutrition. (
Food Subsidy Fails
Food Subsidy Fails
Food Subsidy Fails
Many developing countries use food-price subsidies or price controls to improve the nutrition of the poor. However, … consumers may then substitute towards foods with higher non-nutritional attributes (e.g., taste), but lower nutritional content per unit of currency. … We analyze data from a randomized program of large price subsidies for poor households in two provinces of China and find no evidence that the subsidies improved nutrition. (
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