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Determining the Impact of Food Price and Income Changes on Obesity

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  • Schroeter, Christiane
  • Lusk, Jayson L.
  • Tyner, Wallace E.

Abstract

Despite the significant rise in obesity in the U.S., economic research on obesity is still in its infancy. This paper employs a microeconomic approach to investigate the effects of price and income changes on weight in an effort to determine how a high-calorie food tax, a low-calorie food subsidy, and/or an income changes affect body weight. Although raising the price of high-calorie food typically will likely lead to decreased demand for such goods; it is not clear that such an outcome will actually reduce weight. The model developed in this paper identifies conditions under which price and income changes are mostly likely to actually result in a weight loss. The model is easily implemented using data on own-and cross-price elasticities that are often readily available from extant literature. This is important because survey data that contain both economic information, such as food prices, and weight are extremely rare. Information on relationship between price and weight is critical in developing appropriate public policy and in determining when and where fat taxes, thin subsidies or income re-distribution will achieve the desired objective of reducing obesity.

Suggested Citation

  • Schroeter, Christiane & Lusk, Jayson L. & Tyner, Wallace E., 2005. "Determining the Impact of Food Price and Income Changes on Obesity," 2005 Annual meeting, July 24-27, Providence, RI 19234, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19234
    DOI: 10.22004/ag.econ.19234
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    References listed on IDEAS

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    Cited by:

    1. Just, David R., 2006. "Behavioral Economics, Food Assistance, and Obesity," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 209-220, October.
    2. Abay Asfaw, 2006. "The Role of Food Price Policy in Determining the Prevalence of Obesity: Evidence from Egypt," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 305-312.
    3. Asfaw, Abay, 2007. "Do Government Food Price Policies Affect the Prevalence of Obesity? Empirical Evidence from Egypt," World Development, Elsevier, vol. 35(4), pages 687-701, April.

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