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Abstract

Many public programs promote diets rich in fruits and vegetables based on evidence on the derived health benefits. Sill, produce consumption in the U.S. lags behind other nations, even its most culturally similar neighbor-Canada. This study uses a structural latent variable model to test the role quality and health information play in explaining observed differences in produce consumption. The Alchian-Allen effect predicts that higher quality, higher absolute margin produce will be exported, suggesting that quality may be an important demand factor in importing nations such as Canada. The results show that dietary health information is significant in expanding demands. Quality also promotes fruit consumption in Canada.

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