The Role Of Uncertainty On U.S. Obesity: An Application Of Control Theory
AbstractThis paper considers the problem of a consumer that cares about her health, which we proxy by deviations from current weight to ideal weight, and derives utility from eating and disutility from performing physical activity while taking into account the uncertainty associated with calorie consumption and physical activity. Using U.S. data, we find that uncertainty regarding the effectiveness of physical activity produces a larger cautionary response. Moreover, it is harder to learn and is more important to the agent than the uncertainty regarding the calorie content of food. These results can help policymakers design more cost effective policies.
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Bibliographic InfoPaper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2009-506.
Length: 29 Pages
Date of creation: Sep 2009
Date of revision:
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-10-03 (Agricultural Economics)
- NEP-ALL-2009-10-03 (All new papers)
- NEP-HEA-2009-10-03 (Health Economics)
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.:
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