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Title: A Macroeconomic Analysis of Obesity in the U.S.

Citation Type: Miscellaneous

Publication Year: 2007

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Abstract: We perform a dynamic general equilibrium analysis of the observed increase in the average weight of American adults during the last 40 years. Data suggests higher weights can be attributed to increased consumption of food prepared away from home, which resulted in higher caloric intake. We examine the quantitative implications of a decline in the relative monetary and time cost of food prepared away from home on the caloric intake of American households. Two channels that lower this relative cost are considered. First, productivity improvements in the production of food prepared away from home. We find that this channel is qualitatively consistent with expenditure trends in food items, but falls short of accounting for the magnitude of the observed changes. We then consider actual declines in income taxes and in the gender wage gap, which increase the cost of preparing food at home from scratch. Our model accounts for three quarters of the observed changes in calorie consumption, and is consistent with trends in aggregate food expenditures, time use, and key macroeconomic variables. Our results indicate that changes in the relative cost of food prepared away from home play an important role in our understanding of the increased weight of the American population during the last 40 years.

Url: http://moya.bus.miami.edu/~aperalta/research/obesity.pdf

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Authors: Peralta-Alva, Adrian; Gomis-Porqueras, Pere

Publisher: University of Miami

Data Collections: IPUMS USA

Topics: Health

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