IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp3529.html
   My bibliography  Save this paper

The Rise in Obesity across the Atlantic: An Economic Perspective

Author

Listed:
  • Brunello, Giorgio

    (University of Padova)

  • Michaud, Pierre-Carl

    (HEC Montreal)

  • Sanz-de-Galdeano, Anna

    (Universidad de Alicante)

Abstract

We provide comparable evidence on the patterns and trends in obesity across the Atlantic and analyse whether there are economic rationales for public intervention to control obesity. We take into account equity issues as well as efficiency considerations, which are organized around three categories of market failures: productive inefficiencies, lack of information or rationality and health insurance externalities. We also calculate the long term financial consequences of current US and European obesity trends, and conclude with a brief review of current policies to reduce and prevent excessive body weight both in Europe and the US.

Suggested Citation

  • Brunello, Giorgio & Michaud, Pierre-Carl & Sanz-de-Galdeano, Anna, 2008. "The Rise in Obesity across the Atlantic: An Economic Perspective," IZA Discussion Papers 3529, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3529
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp3529.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tatiana Andreyeva & Pierre-Carl Michaud & Arthur Van Soest, 2005. "Obesity and Health in Europeans Ages 50 and Above," Working Papers WR-331, RAND Corporation.
    2. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June.
    3. Bound, John & Stinebrickner, Todd & Waidmann, Timothy, 2010. "Health, economic resources and the work decisions of older men," Journal of Econometrics, Elsevier, vol. 156(1), pages 106-129, May.
    4. Jayachandran N. Variyam & John Cawley, 2006. "Nutrition Labels and Obesity," NBER Working Papers 11956, National Bureau of Economic Research, Inc.
    5. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 879-907.
    6. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
    7. Janet Audrain-McGovern & Steven Lehrer & J. Niles Rosenquist, 2006. "The Impact Of Poor Health On Education: New Evidence Using Genetic Markers," Working Paper 1045, Economics Department, Queen's University.
    8. Tatiana Andreyeva & Pierre-Carl Michaud & Arthur Van Soest, 2005. "Obesity and Health in Europeans Ages 50 and Above," Working Papers 331, RAND Corporation.
    9. Lumsdaine, Robin L. & Mitchell, Olivia S., 1999. "New developments in the economic analysis of retirement," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 49, pages 3261-3307, Elsevier.
    10. 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.
    11. Frank Lichtenberg, 2000. "Sources of U.S. Longevity Increase, 1960 -1997," CESifo Working Paper Series 405, CESifo.
    12. Edward C. Norton & Euna Han, 2008. "Genetic information, obesity, and labor market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 17(9), pages 1089-1104, September.
    13. Bloom, David E. & Canning, David & Sevilla, Jaypee, 2004. "The Effect of Health on Economic Growth: A Production Function Approach," World Development, Elsevier, vol. 32(1), pages 1-13, January.
    14. David T. Levy & Marilyn Oblak, 2007. "Tobacco Control as a Model for Trimming the Obesity Problem," Chapters, in: Zoltán J. Ács & Alan Lyles (ed.), Obesity, Business and Public Policy, chapter 11, Edward Elgar Publishing.
    15. Eric French, 2005. "The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(2), pages 395-427.
    16. David N. Weil, 2005. "Accounting for the Effect of Health on Economic Growth," Working Papers 2005-07, Brown University, Department of Economics.
    17. Rodrigo R. Soares, 2005. "Mortality Reductions, Educational Attainment, and Fertility Choice," American Economic Review, American Economic Association, vol. 95(3), pages 580-601, June.
    18. James M. Malcomson, 1997. "Contracts, Hold-Up, and Labor Markets," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 1916-1957, December.
    19. Anna Sanz de Galdeano, 2007. "An Economic Analysis of Obesity in Europe: Health, Medical Care and Absenteeism Costs," Working Papers 2007-38, FEDEA.
    20. Revicki, D.A. & Israel, R.G., 1986. "Relationship between body mass indices and measures of body adiposity," American Journal of Public Health, American Public Health Association, vol. 76(8), pages 992-994.
    21. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
    22. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416, Elsevier.
    23. Benitez-Silva, Hugo & Buchinsky, Moshe & Chan, Hiu Man & Rust, John & Sheidvasser, Sofia, 1999. "An empirical analysis of the social security disability application, appeal, and award process," Labour Economics, Elsevier, vol. 6(2), pages 147-178, June.
    24. 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.
    25. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    26. Kaestner, Robert & Grossman, Michael, 2009. "Effects of weight on children's educational achievement," Economics of Education Review, Elsevier, vol. 28(6), pages 651-661, December.
    27. Kerkhofs, Marcel & Lindeboom, Maarten & Theeuwes, Jules, 1999. "Retirement, financial incentives and health," Labour Economics, Elsevier, vol. 6(2), pages 203-227, June.
    28. David M. Cutler & Edward L. Glaeser, 2009. "Why Do Europeans Smoke More than Americans?," NBER Chapters, in: Developments in the Economics of Aging, pages 255-282, National Bureau of Economic Research, Inc.
    29. John Cawley, 2004. "The Impact of Obesity on Wages," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    30. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    31. Currie, Alison & Shields, Michael A. & Price, Stephen Wheatley, 2007. "The child health/family income gradient: Evidence from England," Journal of Health Economics, Elsevier, vol. 26(2), pages 213-232, March.
    32. Ruhm Christopher J, 2007. "Current and Future Prevalence of Obesity and Severe Obesity in the United States," Forum for Health Economics & Policy, De Gruyter, vol. 10(2), pages 1-28, September.
    33. Baum II, Charles L. & Ruhm, Christopher J., 2009. "Age, socioeconomic status and obesity growth," Journal of Health Economics, Elsevier, vol. 28(3), pages 635-648, May.
    34. Michaud Pierre-Carl & van Soest Arthur H.O. & Andreyeva Tatiana, 2007. "Cross-Country Variation in Obesity Patterns among Older Americans and Europeans," Forum for Health Economics & Policy, De Gruyter, vol. 10(2), pages 1-32, December.
    35. Janet Currie & Mark Stabile, 2003. "Socioeconomic Status and Child Health: Why Is the Relationship Stronger for Older Children?," American Economic Review, American Economic Association, vol. 93(5), pages 1813-1823, December.
    36. Zoltán J. Ács & Alan Lyles (ed.), 2007. "Obesity, Business and Public Policy," Books, Edward Elgar Publishing, number 3922.
    37. Jay Bhattacharya & Neeraj Sood, 2006. "Health Insurance and the Obesity Externality," Advances in Health Economics and Health Services Research, in: The Economics of Obesity, pages 279-318, Emerald Group Publishing Limited.
    38. Darius Lakdawalla & Dana Goldman & Jay Bhattacharya, 2001. "Are the Young Becoming More Disabled?," NBER Working Papers 8247, National Bureau of Economic Research, Inc.
    39. Shin-Yi Chou & Inas Rashad & Michael Grossman, 2008. "Fast-Food Restaurant Advertising on Television and Its Influence on Childhood Obesity," Journal of Law and Economics, University of Chicago Press, vol. 51(4), pages 599-618, November.
    40. Bound, John & Schoenbaum, Michael & Stinebrickner, Todd R. & Waidmann, Timothy, 1999. "The dynamic effects of health on the labor force transitions of older workers," Labour Economics, Elsevier, vol. 6(2), pages 179-202, June.
    41. Johansson, Edvard & Böckerman, Petri & Kiiskinen, Urpo & Heliövaara, Markku, 2007. "The Effect of Obesity on Wages and Employment: The Difference Between Having a High BMI and Being Fat," Working Papers 528, Hanken School of Economics.
    42. Sara Bleich & David Cutler & Christopher Murray & Alyce Adams, 2007. "Why Is The Developed World Obese?," NBER Working Papers 12954, National Bureau of Economic Research, Inc.
    43. Tomas J. Philipson & Richard A. Posner, 1999. "The Long-Run Growth in Obesity as a Function of Technological Change," Working Papers 9912, Harris School of Public Policy Studies, University of Chicago.
    44. Paraponaris, Alain & Saliba, Berengere & Ventelou, Bruno, 2005. "Obesity, weight status and employability: Empirical evidence from a French national survey," Economics & Human Biology, Elsevier, vol. 3(2), pages 241-258, July.
    45. Henry Saffer & Melanie Wakefield & Yvonne Terry-McElrath, 2007. "The Effect of Nicotine Replacement Therapy Advertising on Youth Smoking," NBER Working Papers 12964, National Bureau of Economic Research, Inc.
    46. Burkhauser, Richard V. & Cawley, John, 2008. "Beyond BMI: The value of more accurate measures of fatness and obesity in social science research," Journal of Health Economics, Elsevier, vol. 27(2), pages 519-529, March.
    47. Barbara Sianesi & John Van Reenen, 2003. "The Returns to Education: Macroeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 157-200, April.
    48. Brunello, Giorgio & D'Hombres, Beatrice, 2007. "Does body weight affect wages?: Evidence from Europe," Economics & Human Biology, Elsevier, vol. 5(1), pages 1-19, March.
    49. Pieter H M van Baal & Johan J Polder & G Ardine de Wit & Rudolf T Hoogenveen & Talitha L Feenstra & Hendriek C Boshuizen & Peter M Engelfriet & Werner B F Brouwer, 2008. "Lifetime Medical Costs of Obesity: Prevention No Cure for Increasing Health Expenditure," PLOS Medicine, Public Library of Science, vol. 5(2), pages 1-8, February.
    50. Jens Høj & Miguel Jimenez & Maria Maher & Giuseppe Nicoletti & Michael Wise, 2007. "Product Market Competition in the OECD Countries: Taking Stock and Moving Forward," OECD Economics Department Working Papers 575, OECD Publishing.
    51. David N. Well, 2007. "Accounting for the Effect Of Health on Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1265-1306.
    52. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    53. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    54. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-1194, December.
    55. Frank, Robert H, 1984. "Are Workers Paid Their Marginal Products?," American Economic Review, American Economic Association, vol. 74(4), pages 549-571, September.
    56. John Cawley, 2000. "Body Weight and Women's Labor Market Outcomes," NBER Working Papers 7841, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huerta, Maria C. & Borgonovi, Francesca, 2010. "Education, alcohol use and abuse among young adults in Britain," Social Science & Medicine, Elsevier, vol. 71(1), pages 143-151, July.
    2. Brunello, Giorgio & Sanz-de-Galdeano, Anna & Terskaya, Anastasia, 2020. "Not only in my genes: The effects of peers’ genotype on obesity," Journal of Health Economics, Elsevier, vol. 72(C).
    3. Tomer, John F., 2013. "Stemming the tide of obesity: What needs to happen," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 42(C), pages 88-98.
    4. Sanz-de-Galdeano, Anna & Terskaya, Anastasia & Upegui, Angie, 2020. "Association of a Genetic Risk Score with BMI along the Life-Cycle: Evidence from Several US Cohorts," IZA Discussion Papers 13671, Institute of Labor Economics (IZA).
    5. Daniel S. Hamermesh, 2009. "Grazing, Goods and Girth: Determinants and Effects," NBER Working Papers 15277, National Bureau of Economic Research, Inc.
    6. Ghosh, sudeshna, 2017. "Globalization and Obesity: Asian Experiences of ‘Globesity’," MPRA Paper 94601, University Library of Munich, Germany.
    7. Ferda Halicioglu, 2013. "Dynamics of obesity in Finland," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 40(5), pages 644-657, October.
    8. Lundborg, Petter & Nystedt, Paul & Rooth, Dan-Olof, 2010. "No Country for Fat Men? Obesity, Earnings, Skills, and Health among 450,000 Swedish Men," IZA Discussion Papers 4775, Institute of Labor Economics (IZA).
    9. Anna Sanz-de-Galdeano & Anastasia Terskaya & Angie Upegui, 2020. "Association of a genetic risk score with BMI along the life-cycle: Evidence from several US cohorts," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-19, September.
    10. Costa-Font, Joan & Fabbri, Daniele & Gil, Joan, 2009. "Decomposing body mass index gaps between Mediterranean countries: A counterfactual quantile regression analysis," Economics & Human Biology, Elsevier, vol. 7(3), pages 351-365, December.
    11. David G. Blanchflower & Andrew J. Oswald & Bert Van Landeghem, 2009. "Imitative Obesity and Relative Utility," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 528-538, 04-05.
    12. Barone, Adriana & Nese, Annamaria, 2015. "Body Weight and Gender: Academic Choice and Performance," MPRA Paper 68450, University Library of Munich, Germany.
    13. Eduardo Rodríguez Oreggia & Ana Bertha Pérez Lizaur, 2010. "Factores de dinámica social asociados al índice de masa corporal en adultos en México," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 25(2), pages 337-362.
    14. BARONE, Adriana & NESE, Annamaria, 2014. "Body Weight and Academic Performance: Gender and Peer Effects," CELPE Discussion Papers 129, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    15. Todeschini, F. & Labeaga, J. & Jiménez-Martín, S., 2010. "Death by lung cancer or by diabetes? The unintended consequences of quitting smoking," Health, Econometrics and Data Group (HEDG) Working Papers 10/16, HEDG, c/o Department of Economics, University of York.

    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. Brunello, Giorgio & Michaud, Pierre-Carl & Sanz-de-Galdeano, Anna, 2008. "The Rise in Obesity across the Atlantic: An Economic Perspective," IZA Discussion Papers 3529, Institute for the Study of Labor (IZA).
    2. Anna Sanz de Galdeano, 2007. "An Economic Analysis of Obesity in Europe: Health, Medical Care and Absenteeism Costs," Working Papers 2007-38, FEDEA.
    3. Atella, Vincenzo & Pace, Noemi & Vuri, Daniela, 2008. "Are employers discriminating with respect to weight?: European Evidence using Quantile Regression," Economics & Human Biology, Elsevier, vol. 6(3), pages 305-329, December.
    4. Cavaco, Sandra & Eriksson, Tor & Skalli, Ali, 2014. "Life cycle development of obesity and its determinants in six European countries," Economics & Human Biology, Elsevier, vol. 14(C), pages 62-78.
    5. Barone, Adriana & O'Higgins, Niall, 2010. "Fat and out in Salerno and its province: Adolescent obesity and early school leaving in Southern Italy," Economics & Human Biology, Elsevier, vol. 8(1), pages 44-57, March.
    6. García Villar, Jaume & Quintana-Domeque, Climent, 2009. "Income and body mass index in Europe," Economics & Human Biology, Elsevier, vol. 7(1), pages 73-83, March.
    7. Baum II, Charles L. & Ruhm, Christopher J., 2009. "Age, socioeconomic status and obesity growth," Journal of Health Economics, Elsevier, vol. 28(3), pages 635-648, May.
    8. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    9. 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.
    10. Cavaco, Sandra & Eriksson, Tor & Skalli, Ali, 2011. "Life Cycle Development of Obesity and Its Determinants," Working Papers 11-7, University of Aarhus, Aarhus School of Business, Department of Economics.
    11. 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.
    12. von Hinke Kessler Scholder S, 2009. "Genetic Markers as Instrumental Variables: An Application to Child Fat Mass and Academic Achievement," Health, Econometrics and Data Group (HEDG) Working Papers 09/25, HEDG, c/o Department of Economics, University of York.
    13. 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.
    14. Charles L. Baum, 2009. "The effects of cigarette costs on BMI and obesity," Health Economics, John Wiley & Sons, Ltd., vol. 18(1), pages 3-19, January.
    15. Classen, Timothy J., 2010. "Measures of the intergenerational transmission of body mass index between mothers and their children in the United States, 1981-2004," Economics & Human Biology, Elsevier, vol. 8(1), pages 30-43, March.
    16. Michaud Pierre-Carl & van Soest Arthur H.O. & Andreyeva Tatiana, 2007. "Cross-Country Variation in Obesity Patterns among Older Americans and Europeans," Forum for Health Economics & Policy, De Gruyter, vol. 10(2), pages 1-32, December.
    17. Caliendo, Marco & Gehrsitz, Markus, 2016. "Obesity and the labor market: A fresh look at the weight penalty," Economics & Human Biology, Elsevier, vol. 23(C), pages 209-225.
    18. Costa-Font, Joan & Fabbri, Daniele & Gil, Joan, 2009. "Decomposing body mass index gaps between Mediterranean countries: A counterfactual quantile regression analysis," Economics & Human Biology, Elsevier, vol. 7(3), pages 351-365, December.
    19. Vincenzo Atella & Joanna Kopinska, 2011. "Body weight of Italians: the weight of Education," CEIS Research Paper 189, Tor Vergata University, CEIS, revised 23 Mar 2011.
    20. Costa-Font, Joan & Gil, Joan, 2013. "Intergenerational and socioeconomic gradients of child obesity," Social Science & Medicine, Elsevier, vol. 93(C), pages 29-37.

    More about this item

    Keywords

    equity; efficiency; health care costs; obesity;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • D6 - Microeconomics - - Welfare Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:iza:izadps:dp3529. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.