A Theory of LTR Junk-food Consumption
AbstractLTR junk-food consumption balances the marginal satisfaction with the marginal deterioration of health. An LTR person discounts the instantaneous marginal satisfaction from junk-food consumption by its implications for his survival probability. His change rate of health evaluation is increased (decreased) by junk-food consumption when health is better (worse) than a critical level. The moderating direct effects of age and relative price on junk-food consumption may be amplified, or dimmed, by the change in his health. The stationary health of a person ignoring his age declines with his time-preference rate and rises with the marginal effect of junk food on his intrinsic health-improvement rate.
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Bibliographic InfoPaper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp03-06.
Length: 21 pages
Date of creation: 2003
Date of revision:
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junk food; health food; relative price; relative taste; risk; natural recovery; full-capacity income; expected lifetime utility; rational consumption; health; health value;
Find related papers by JEL classification:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
This paper has been announced in the following NEP Reports:
- NEP-AGR-2003-11-23 (Agricultural Economics)
- NEP-ALL-2003-11-16 (All new papers)
- NEP-EDU-2003-11-16 (Education)
- NEP-HEA-2003-11-16 (Health Economics)
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