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Gluttony and Sloth: Symptoms of Trouble or Signs of Bliss? A Theory of Choice in the Presence of Behavioral Adjustment Costs

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Author Info
Heather Bednarek (Saint Louis University)
Thomas Jeitschko (Michigan State University)
Rowena Pecchenino (Michigan State University)

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Abstract

We present a model in which agents value food, leisure and health, and take into account how their food consumption and leisure affect their health. Drawing insights from behavioral psychology and medical practice, agents face adjustment costs in choosing consumption and leisure. We find that recent increases in obesity rates are not cause for concern from either the standpoint of individually assessed well-being, nor necessarily of the medical practitioner. However, the fact that agents who hope to adjust their lifestyles face adjustment costs indicates that there is potential for policy in increasing individual welfare: first, by taking measures that may decrease the incidence of supra-optimal consumption and leisure and, second, by taking measures that may facilitate behavioral change. However, it must be recognized, especially in the latter case, public policy may be limited by diverse circumstances faced by individuals that will not be amenable to general "one-size-fits-all" types of policies.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Contributions to Economic Analysis & Policy.

Volume (Year): 5 (2006)
Issue (Month): 1 ()
Pages: 1507-1507
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Handle: RePEc:bep:eapcon:v:5:y:2006:i:1:p:1507-1507

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Related research
Keywords: economics of obesity overweightness behavioral choice adjustment costs technological change

Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

References listed on IDEAS
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  1. Tomas Philipson, 2001. "The world-wide growth in obesity: an economic research agenda," Health Economics, John Wiley & Sons, Ltd., vol. 10(1), pages 1-7.
  2. Darius Lakdawalla & Tomas Philipson, 2002. "The Growth of Obesity and Technological Change: A Theoretical and Empirical Examination," NBER Working Papers 8946, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Trenton Smith, 2002. "Obesity and Nature's Thumbprint: How Modern Waistlines Can Inform Economic Theory," University of California at Santa Barbara, Economics Working Paper Series 18-02, Department of Economics, UC Santa Barbara. [Downloadable!]
  4. Patricia M. Anderson & Kristin F. Butcher & Phillip B. Levine, 2003. "Economic perspectives on childhood obesity," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 30-48. [Downloadable!]
  5. David Cutler & Edward Glaeser & Jesse Shapiro, 2003. "Why Have Americans Become More Obese?," NBER Working Papers 9446, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Tomas J. Philipson & Richard A. Posner, 1999. "The Long-Run Growth in Obesity as a Function of Technological Change," NBER Working Papers 7423, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Cole, T. J., 2003. "The secular trend in human physical growth: a biological view," Economics and Human Biology, Elsevier, vol. 1(2), pages 161-168, June. [Downloadable!] (restricted)
  8. Komlos, John & Smith, Patricia K. & Bogin, Barry, 2003. "Obesity and the Rate of Time Preference: Is there a Connection?," Discussion Papers in Economics 60, University of Munich, Department of Economics. [Downloadable!]
  9. Levy, Amnon, 2002. "Rational eating: can it lead to overweightness or underweightness?," Journal of Health Economics, Elsevier, vol. 21(5), pages 887-899, September. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
    Other versions:
  11. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
  12. Darius Lakdawalla & Tomas Philipson, 2002. "The Growth of Obesity and Technological Change: A Theoretical and Empirical Examination," Working Papers 0203, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
  13. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
    Other versions:
  14. Thomas D. Jeitschko & Rowena A. Pecchenino, 2006. "Do You Want Fries with That? An Exploration of Serving Size, Social Welfare, and Our Waistlines," Economic Inquiry, Oxford University Press, vol. 44(3), pages 442-450, July. [Downloadable!] (restricted)
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