Junk-food, home cooking, physical activity and obesity: The effect of the fat tax and the thin subsidy
AbstractIn an effort to reduce the growing prevalence of obesity, a tax on junk-foods, known as 'fat tax', has been proposed, the revenue from which could be used to finance a 'thin subsidy' for healthy foods or exercising equipment. The present paper addresses the fat tax and thin subsidy within a food-intake rational-choice model. Assuming that healthy meals are cooked at home with purchased ingredients and time input, the paper examines the effects on obesity of a tax on junk-food meals and a subsidy to cooking ingredients, distinguishing between a weight-conscious and a non-weight conscious individual, and between a weight-conscious individual who is physically active and physically inactive. The results show that for a non-weight conscious individual a fat tax will unambiguously reduce obesity, whereas a thin subsidy may increase obesity. However, for a weight-conscious individual, particularly one who is physically active, even a fat tax may increase obesity, as it may reduce not just the consumption of junk-food, but also the time devoted to physical activity. The paper explores conditions under which obesity will rise, fall, or remain intact following the introduction of a fat tax or a thin subsidy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 93 (2009)
Issue (Month): 5-6 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505578
Junk-food Home cooking Physical activity Obesity Fat tax Thin subsidy;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tomas J. Philipson & Richard A. Posner, 1999.
"The Long-Run Growth in Obesity as a Function of Technological Change,"
9912, Harris School of Public Policy Studies, University of Chicago.
- 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.
- Robert Goldfarb & Thomas C. Leonard & Steven Suranovic, 2006.
"Modeling Alternative Motives for Dieting,"
Eastern Economic Journal,
Eastern Economic Association, vol. 32(1), pages 115-131, Winter.
- Sanz-de-Galdeano, Anna, 2005.
"The Obesity Epidemic in Europe,"
IZA Discussion Papers
1814, Institute for the Study of Labor (IZA).
- Shin-Yi Chou & Michael Grossman & Henry Saffer, 2002.
"An Economic Analysis of Adult Obesity: Results from the Behavioral Risk Factor Surveillance System,"
NBER Working Papers
9247, National Bureau of Economic Research, Inc.
- 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.
- Inas Rashad & Michael Grossman & Shin-Yi Chou, 2005.
"The Super Size of America: An Economic Estimation of Body Mass Index and Obesity in Adults,"
NBER Working Papers
11584, National Bureau of Economic Research, Inc.
- Inas Rashad & Michael Grossman & Shin-Yi Chou, 2006. "The Super Size of America: An Economic Estimation of Body Mass Index and Obesity in Adults," Eastern Economic Journal, Eastern Economic Association, vol. 32(1), pages 133-148, Winter.
- Levy, Amnon, 2003. "A Theory of LTR Junk-food Consumption," Economics Working Papers wp03-06, School of Economics, University of Wollongong, NSW, Australia.
- Darius Lakdawalla & Tomas Philipson & Jay Bhattacharya, 2005. "Welfare-Enhancing Technological Change and the Growth of Obesity," American Economic Review, American Economic Association, vol. 95(2), pages 253-257, May.
- Gruber, Jonathan & Frakes, Michael, 2006. "Does falling smoking lead to rising obesity?," Journal of Health Economics, Elsevier, vol. 25(2), pages 183-197, March.
- David M. Cutler & Edward L. Glaeser & Jesse M. Shapiro, 2003.
"Why Have Americans Become More Obese?,"
Harvard Institute of Economic Research Working Papers
1994, Harvard - Institute of Economic Research.
- Rajeev Goel, 2006. "Obesity: An economic and financial perspective," Journal of Economics and Finance, Springer, vol. 30(3), pages 317-324, September.
- Yaniv, Gideon, 2002. "Non-adherence to a low-fat diet: an economic perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 48(1), pages 93-104, May.
- Jay Bhattacharya & M. Kate Bundorf, 2005. "The Incidence of the Healthcare Costs of Obesity," NBER Working Papers 11303, National Bureau of Economic Research, Inc.
- Ted O'Donoghue & Matthew Rabin, 2003. "Studying Optimal Paternalism, Illustrated by a Model of Sin Taxes," American Economic Review, American Economic Association, vol. 93(2), pages 186-191, May.
- Cash, Sean B. & Sunding, David L. & Zilberman, David, 2004. "Fat Taxes And Thin Subsidies: Prices, Diet, And Health Outcomes," 2004 Annual meeting, August 1-4, Denver, CO 19961, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Shapiro, Jesse & Glaeser, Edward & Cutler, David, 2003. "Why Have Americans Become More Obese," Scholarly Articles 2640583, Harvard University Department of Economics.
- Levy, Amnon, 2002. "Rational eating: can it lead to overweightness or underweightness?," Journal of Health Economics, Elsevier, vol. 21(5), pages 887-899, September.
- 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.
- Odelia Rosin, 2008. "The Economic Causes Of Obesity: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 22(4), pages 617-647, 09.
RePEc Biblio mentionsAs found on the RePEc Biblio, the curated bibliography for Economics:CitEc Project, subscribe to its RSS feed for this item.
- Chavas, Jean-Paul, 2013. "On the microeconomics of food and malnutrition under endogenous discounting," European Economic Review, Elsevier, vol. 59(C), pages 80-96.
- Dragone, Davide & Savorelli, Luca, 2012.
"Thinness and obesity: A model of food consumption, health concerns, and social pressure,"
Journal of Health Economics,
Elsevier, vol. 31(1), pages 243-256.
- Davide Dragone & Luca Savorelli, 2010. "Thinness and Obesity: A Model of Food Consumption, Health Concerns, and Social Pressure," STICERD - Economic Organisation and Public Policy Discussion Papers Series 017, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- D. Dragone & F. Manaresi & L. Savorelli, 2013.
"Obesity and smoking: can we catch two birds with one tax?,"
wp873, Dipartimento Scienze Economiche, Universita' di Bologna.
- Davide, Dragone & Francesco, Manaresi & Luca, Savorelli, 2013. "Obesity and smoking: can we catch two birds with one tax?," SIRE Discussion Papers 2013-31, Scottish Institute for Research in Economics (SIRE).
- Davide Dragone & Francesco Manaresi & Luca Savorelli, 2013. "Obesity and smoking: can we catch two birds with one tax?," Discussion Paper Series, Department of Economics 201306, Department of Economics, University of St. Andrews.
- Gilad Sorek, 2013. "Efficient Self-Protection and Progress in Curing-Technology," Auburn Economics Working Paper Series auwp2013-07, Department of Economics, Auburn University.
- Wang, Yang & Yang, Muzhe, 2013. "Crisis-induced depression, physical activity and dietary intake among young adults: Evidence from the 9/11 terrorist attacks," Economics & Human Biology, Elsevier, vol. 11(2), pages 206-220.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.