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Published on: June 21, 2019
The relationship between income, weight, and using traffic-light labeling to buy processed food in Ecuador
Juan Pablo Díaz-Sánchez1, Cintya Lanchimba2,3, Moisés Obaco4
1Departamento de Economía Cuantitativa, Escuela Politécnica Nacional, Quito, Ecuador. juan.diaz@epn.edu.ec.
Abstract:
This paper presents an investigation of the factors influencing the decision to purchase processed food based on traffic-light labeling (TLL). To achieve this, we use data from the official National Survey of Health and Nutrition, which gathered information on 26,532 individuals aged between 19 and 59 between 2011 and 2013. Employing a probit regression to assess the likelihood of buying food based on TLL, we identify a positive association between income level and the probability of buying food based on TLL; indeed, our model suggests that a 1% increase in monthly income increases by 0.008 the probability of buying food based on TLL. We infer that people with higher levels of income are more aware of the benefits of TLL and healthy food habits. Our results also suggest that the probability of basing purchasing decisions on TLL is higher for overweight people compared to those of normal weight, that is, overweight people buy their processed food paying more attention to TLL compared to normal weight people.

