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Information, endogeneity, and consumer health behaviour: application to dietary intakes

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  • Jayachandran Variyam
  • James Blaylock
  • David Smallwood

Abstract

Due to heightened public health interest, a growing number of consumer health behaviour studies are focusing on the effect of health information on the demand for health inputs and outcomes. Many of these studies, however, have overlooked the potential endogeneity of information variables stemming from unobserved individual heterogeneity. Due to simultaneity bias, ignoring endogeneity may lead to inaccurate estimates of informational effects on health behaviour. Using dietary intake data for fat, saturated fat, cholesterol, and fibre, this paper illustrates the pitfalls of treating health information related to these nutrients as exogenous variables in their demand equations. In most of the estimated models, the exogeneity of information is statistically rejected. When the information variables are treated as exogenous variables, their effects on dietary intakes are underestimated. The estimated effects of key intake determinants such as income, education, ethnicity, and race are also different in such a specification compared to a specification which treats information variables as endogenous. Implications for nutrition education policies are discussed.

Suggested Citation

  • Jayachandran Variyam & James Blaylock & David Smallwood, 1999. "Information, endogeneity, and consumer health behaviour: application to dietary intakes," Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 217-226.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:217-226
    DOI: 10.1080/000368499324444
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    References listed on IDEAS

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    1. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, July.
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    Cited by:

    1. Richards Timothy J. & Mancino Lisa & Nganje William, 2012. "Nutrient Demand in Food Away from Home," Forum for Health Economics & Policy, De Gruyter, vol. 15(2), pages 1-31, April.
    2. Lin, Biing-Hwan & Yen, Steven T., 2005. "Consumer Knowledge, Food Label Use and Grain Consumption," 2005 Annual meeting, July 24-27, Providence, RI 19557, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Christiane Schroeter & Sven Anders & Andrea Carlson, 2013. "The Economics of Health and Vitamin Consumption," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(1), pages 125-149.
    4. Staudigel, Matthias, 2012. "On The Application Of Household Production Theory To Health And Nutrition," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137389, German Association of Agricultural Economists (GEWISOLA).
    5. Staudigel, M., 2013. "On the Application of Household Production Theory to Health Nutrition," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.
    6. Yen, Steven T. & Lin, Biing-Hwan & Davis, Christopher G., 2008. "Consumer knowledge and meat consumption at home and away from home," Food Policy, Elsevier, vol. 33(6), pages 631-639, December.

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