Impacts of Fat and Cholesterol Information On Consumer Demand: Application of New Indexes

Consumers' beliefs in the benefits of reducing fat intakes, especially saturated fat, and of increasing calcium intake from such foods as dairy products, depend upon the acquired information related to diet and health. This study develops new health information measures from different sources. The monthly information indexes, constructed for 1980-93, show that the amount of consumer information related to fat and cholesterol in circulation reached the highest levels during 1989-90. The results from an empirical application show that these new indexes of consumer health information about fats and cholesterol could explain the changing patterns of consumer choice for whole milk vs. lower fat milk in the United States.