ARE THE TOTAL DAILY COST OF FOOD AND DIET QUALITY RELATED: A RANDOM EFFECTS PANEL DATA ANALYSIS

There is a common perception that healthy food costs more than less healthy food. In this study we use a demand model for diet quality, rather than the quantity of food. Since in our data, total daily cost and diet quality are both calculated from the foods chosen, we account for the fact that cost is endogenous. We find that while total daily food cost is statistically significant in relation to diet quality, the degree of association is very small. Hence, it does not appear that cost alone prevents individuals in the United States from purchasing a healthy diet. Other factors such as food culture and environment, health behaviours, and demographics are more important. Our findings suggest that the choice to consume a healthy diet is very complicated.