Project: WIC’s Effect on Prices of Infant Formula
Award Year: 2005
Amount of award, fiscal 2005: $25,000.00
Institution: University of California, Berkeley
Principal Investigator: Jeffrey Perloff
Status: Completed
Detailed Objective: Rebates from infant formula manufacturers to State agencies that administer the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) significantly reduced the cost of the program by about $1.6 billion in 2004. However, concerns have been raised that the WIC program and its infant formula rebate system affect the price of infant formula for non-WIC customers. This research will analyze the impact of the WIC program on infant formula markets, using Information Resources, Inc., data on household purchases of infant formula to estimate a system of demand equations for various brands of infant formula.
Topic: WIC
Dataset: AC Nielsen Data