| 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 |