Housing wealth, food spending, and diet quality: Evidence from panel data

Abstract

Diet is important in determining positive health outcomes. Income constraints are often provided as an explanation for poor dietary choices made by households. We test this hypothesis by exploiting shocks to household budgets driven by changes in house prices. Using a comprehensive panel of household food purchases matched to house price data, we find that house prices have a positive impact on food expenditure, but no impact on diet quality. We also find that the total quantity of food purchased increases as budget constraints are relaxed suggesting that changes in quantity are the primary driver of the expenditure change. Finally, we demonstrate that the impact of budget constraints is larger for lower income and younger age households.