IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v10y2010i1n83.html
   My bibliography  Save this article

Economic Incentives for a Healthy Diet: A Comparison of Policies in a Canadian Context

Author

Listed:
  • Kennedy Peter W

    (University of Victoria)

Abstract

This paper examines the potential impact of policies to promote dietary health in the context of a tax-financed universal health care (TFUHC) system, as found in Canada and many other countries, in which a universal level of treatment is set by government policy. I construct a model in which a low quality diet raises the risk of disease, and disease in turn causes a loss of labor productivity. Low quality diets are less expensive than high quality diets, so dietary choices are worse for lower income households. The effect of disease can be partly offset by medical treatment. I show that dietary choices under TFUHC are distorted by a moral hazard problem which leads to diets that are lower in quality than is first-best. I then examine three different policy interventions to address the dietary distortion: a reduced level of treatment; risk-based premiums for health care; and a quality-based tax on food. I calibrate the model with Canadian data on type 2 diabetes and derive the net benefit and distributional impact for each policy.

Suggested Citation

  • Kennedy Peter W, 2010. "Economic Incentives for a Healthy Diet: A Comparison of Policies in a Canadian Context," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-32, September.
    • Handle: RePEc:bpj:bejeap:v:10:y:2010:i:1:n:83
    DOI: 10.2202/1935-1682.2475
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1935-1682.2475
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1935-1682.2475?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Cawley & Chad Meyerhoefer & David Newhouse, 2007. "The impact of state physical education requirements on youth physical activity and overweight," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1287-1301, December.
    2. David M. Cutler & Edward L. Glaeser & Jesse M. Shapiro, 2003. "Why Have Americans Become More Obese?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 93-118, Summer.
    3. Tomas Philipson & Richard Posner, 2008. "Is the Obesity Epidemic a Public Health Problem? A Decade of Research on the Economics of Obesity," NBER Working Papers 14010, National Bureau of Economic Research, Inc.
    4. Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2004. "An economic analysis of adult obesity: results from the Behavioral Risk Factor Surveillance System," Journal of Health Economics, Elsevier, vol. 23(3), pages 565-587, May.
    5. Yaniv, Gideon & Rosin, Odelia & Tobol, Yossef, 2009. "Junk-food, home cooking, physical activity and obesity: The effect of the fat tax and the thin subsidy," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 823-830, June.
    6. Jayachandran N. Variyam & John Cawley, 2006. "Nutrition Labels and Obesity," NBER Working Papers 11956, National Bureau of Economic Research, Inc.
    7. Fred Kuchler & Abebayehu Tegene & J. Michael Harris, 2005. "Taxing Snack Foods: Manipulating Diet Quality or Financing Information Programs?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 4-20.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cavaliere, Alessia & De Marchi, Elisa & Banterle, Alessandro, 2013. "Time Preference and Health: The Problem of Obesity," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164754, International European Forum on System Dynamics and Innovation in Food Networks.
    2. Georgia S. Papoutsi & Andreas C. Drichoutis & Rodolfo M. Nayga Jr., 2013. "The Causes Of Childhood Obesity: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 743-767, September.
    3. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.
    4. Chouinard, Hayley H & Davis, David E. & LaFrance, Jeffrey T. & Perloff, Jeffrey M, 2005. "The Effects of a Fat Tax on Dairy Products," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt60t1f3tn, Department of Agricultural & Resource Economics, UC Berkeley.
    5. Alois Stutzer & Armando N. Meier, 2016. "Limited Self‐control, Obesity, and the Loss of Happiness," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1409-1424, November.
    6. Euna Han & Lisa M. Powell, 2013. "Fast Food Prices And Adult Body Weight Outcomes: Evidence Based On Longitudinal Quantile Regression Models," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 528-536, July.
    7. Pierre Dubois & Rachel Griffith & Aviv Nevo, 2014. "Do Prices and Attributes Explain International Differences in Food Purchases?," American Economic Review, American Economic Association, vol. 104(3), pages 832-867, March.
    8. Tafreschi, Darjusch, 2015. "The income body weight gradients in the developing economy of China," Economics & Human Biology, Elsevier, vol. 16(C), pages 115-134.
    9. Wang, Yang & Yang, Muzhe, 2013. "Crisis-induced depression, physical activity and dietary intake among young adults: Evidence from the 9/11 terrorist attacks," Economics & Human Biology, Elsevier, vol. 11(2), pages 206-220.
    10. Pieroni, Luca & Salmasi, Luca, 2010. "Body weight and socio-economic determinants: quantile estimations from the British Household Panel Survey," ISER Working Paper Series 2010-41, Institute for Social and Economic Research.
    11. Just, David R. & Mancino, Lisa & Wansink, Brian, 2007. "Could Behavioral Economics Help Improve Diet Quality for Nutrition Assistance Program Participants?," Economic Research Report 6391, United States Department of Agriculture, Economic Research Service.
    12. Angela Fertig & Gerhard Glomm & Rusty Tchernis, 2009. "The connection between maternal employment and childhood obesity: inspecting the mechanisms," Review of Economics of the Household, Springer, vol. 7(3), pages 227-255, September.
    13. John Komlos & Marek Brabec, 2010. "The Trend of Mean BMI Values of US Adults, Birth Cohorts 1882-1986 Indicates that the Obesity Epidemic Began Earlier than Hitherto Thought," NBER Working Papers 15862, National Bureau of Economic Research, Inc.
    14. John Komlos & Ariane Breitfelder & Marco Sunder, 2008. "The Transition to Post-industrial BMI Values Among US Children," NBER Working Papers 13898, National Bureau of Economic Research, Inc.
    15. Kolosnitsyna, Marina & Berdnikova, Arina, 2009. "Overweight: What Are its Costs and What Could Be Done?," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 15(3), pages 72-93.
    16. Odelia Rosin, 2008. "The Economic Causes Of Obesity: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 22(4), pages 617-647, September.
    17. Font, Joan Costa & Fabbri, Daniele & Gil, Joan, 2010. "Decomposing cross-country differences in levels of obesity and overweight: Does the social environment matter?," Social Science & Medicine, Elsevier, vol. 70(8), pages 1185-1193, April.
    18. Giorgio Brunello & Pierre-Carl Michaud & Anna Sanz de Galdeano, 2008. "The Rise in Obesity Across the Atlantic: An Economic Perspective," Working Papers 2008-21, FEDEA.
    19. Odelia Rosin, 2012. "Weight‐Loss Dieting Behavior: An Economic Analysis," Health Economics, John Wiley & Sons, Ltd., vol. 21(7), pages 825-838, July.
    20. Staudigel, Matthias, 2011. "How (much) do food prices contribute to obesity in Russia?," Economics & Human Biology, Elsevier, vol. 9(2), pages 133-147, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:10:y:2010:i:1:n:83. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.