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Chain Restaurant Calorie Posting Laws, Obesity, and Consumer Welfare

Author

Listed:
  • Courtemanche, Charles

    (University of Kentucky)

  • Frisvold, David E.

    (University of Iowa)

  • Jimenez-Gomez, David

    (Universidad de Alicante)

  • Ouayogodé, Mariétou H.

    (University of Wisconsin-Madison)

  • Price, Michael

    (University of Alabama)

Abstract

The 2010 Patient Protection and Affordable Care Act (ACA) introduced a mandate requiring chain restaurants to post calorie counts on menus and menu boards. This paper investigates whether and why calorie posting laws work. To do so, we develop a model of calories consumed that highlights two potential channels through which mandates influence choice and outlines an empirical strategy to disentangle these alternatives. We test the predictions of our model using data from the Behavioral Risk Factor Surveillance System to compare changes in body mass index (BMI), obesity, and consumer well-being in locations that implemented calorie-posting laws between 2008 and 2011 to those in neighboring locations without such laws. We find that calorie mandates lead to a small but statistically significant reduction in average BMI of 0.2 kg/m2 (1.5 pounds) and reductions in self-reported measures of life satisfaction. Quantile regressions provide evidence that reductions in BMI and life satisfaction are concentrated among those with healthy weight. Viewed in its totality, the pattern of results is consistent with an economic model in which calorie labels influence consumers both by providing information and by imposing a welfare-reducing moral cost on unhealthy eating.

Suggested Citation

  • Courtemanche, Charles & Frisvold, David E. & Jimenez-Gomez, David & Ouayogodé, Mariétou H. & Price, Michael, 2020. "Chain Restaurant Calorie Posting Laws, Obesity, and Consumer Welfare," IZA Discussion Papers 13088, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13088
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    References listed on IDEAS

    as
    1. Charles J. Courtemanche & Daniela Zapata, 2014. "Does Universal Coverage Improve Health? The Massachusetts Experience," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(1), pages 36-69, January.
    2. A. Colin Cameron & Douglas L. Miller, 2015. "A Practitioner’s Guide to Cluster-Robust Inference," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 317-372.
    3. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    4. Andrew Goodman-Bacon, 2018. "Difference-in-Differences with Variation in Treatment Timing," NBER Working Papers 25018, National Bureau of Economic Research, Inc.
    5. Fitzpatrick Maria D, 2008. "Starting School at Four: The Effect of Universal Pre-Kindergarten on Children's Academic Achievement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-40, November.
    6. Justin Wolfers, 2006. "Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results," American Economic Review, American Economic Association, vol. 96(5), pages 1802-1820, December.
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    Cited by:

    1. Jessica E. Todd & Lisa Mancino & Brandon J. Restrepo & Claudine Kavanaugh & Chris Dicken & Vince Breneman, 2021. "Food Away From Home And Caloric Intake: The Role Of Restaurant Menu Labeling Laws," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 53-71, January.

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    More about this item

    Keywords

    regulation; obesity; menu labeling laws; calorie; information provision; moral costs;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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