Elasticity of Food Demand by Outlet: Effects of the Nutrition Labeling Provision of the Affordable Care Act

Open Access

Abstract

Since 1984, the ratio of demand for food away from home to demand for food at home in the United States has increased significantly. The relative increase in the demand for food away from home may be a major contributing factor to the growing obesity problem in the United States. To address this problem, the government passed a law requiring restaurants to report caloric values on their menus. I estimate an almost ideal demand system to investigate whether the Nutritional Labeling Provision of the Affordable Care Act has been effective in increasing the demand for food at home relative to the demand for food away from home. I do not find evidence that the Nutritional Labeling Provision has had the intended effect.