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Obesity as a Modifier of Price Sensitivity in the United States

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  • Okrent, Abigail
  • Sweitzer, Megan

Abstract

This study examines the price responsiveness of individuals by body weight status in the United States by comparing demand estimates across BMI groups. We find differences in eating patterns of households that have an overweight and obese primary shopper with those of normal weight. We test whether body weight status modifies price sensitivity by estimating demand for food by these BMI groups using the almost ideal demand system.

Suggested Citation

  • Okrent, Abigail & Sweitzer, Megan, 2016. "Obesity as a Modifier of Price Sensitivity in the United States," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236251, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:236251
    DOI: 10.22004/ag.econ.236251
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    References listed on IDEAS

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    1. Abigail M. Okrent & Julian M. Alston, 2012. "The Effects of Farm Commodity and Retail Food Policies on Obesity and Economic Welfare in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(3), pages 611-646.
    2. Gandal Neil & Shabelansky Anastasia, 2010. "Obesity and Price Sensitivity at the Supermarket," Forum for Health Economics & Policy, De Gruyter, vol. 13(2), pages 1-19, July.
    3. Matthias Staudigel, 2012. "How do obese people afford to be obese? Consumption strategies of Russian households," Agricultural Economics, International Association of Agricultural Economists, vol. 43(6), pages 701-714, November.
    4. 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.
    5. Miljkovic, Dragan & Nganje, William & de Chastenet, Helene, 2008. "Economic factors affecting the increase in obesity in the United States: Differential response to price," Food Policy, Elsevier, vol. 33(1), pages 48-60, February.
    6. BARTEN, Anton P., 1969. "Maximum likelihood estimation of a complete system of demand equations," LIDAM Reprints CORE 34, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    8. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    9. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    10. Falbe, J. & Rojas, N. & Grummon, A.H. & Madsen, K.A., 2015. "Higher retail prices of sugar-sweetened beverages 3 months after implementation of an excise tax in Berkeley, California," American Journal of Public Health, American Public Health Association, vol. 105(11), pages 2194-2201.
    11. Joanna P. MacEwan & Julian M. Alston & Abigail M. Okrent, 2014. "The Consequences of Obesity for the External Costs of Public Health Insurance in the United States," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 696-716.
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    Cited by:

    1. Zhen, Chen & Chen, Yu & Lin, Biing-Hwan & Karns, Shawn & Mancino, Lisa & Ver Ploeg, Michele, 2021. "Do Obese and Nonobese Consumers Respond Differently to Price Changes? Implications of Preference Heterogeneity for Using Food Taxes and Subsidies to Reduce Obesity," MPRA Paper 112697, University Library of Munich, Germany.

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    Demand and Price Analysis;

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