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Worth your weight: experimental evidence on the benefits of obesity in low-income countries

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  • Elisa Macchi

Abstract

I study the economic value of obesity—a seemingly inconsequential but unhealthy status symbol in poor countries. Randomizing decision-makers in Kampala, Uganda to view weight-manipulated portraits, I make four findings. First, obesity is perceived as a reliable signal of wealth rather than beauty and health. Second, being obese facilitates access to credit: in a real-stakes experiment involving loan officers, the obesity premium is comparable to raising borrower self-reported earnings by 60%. Third, asymmetric information drives this premium, which drops significantly when more financial information is provided. Fourth, obesity benefits and wealth-signaling value are commonly overestimated, raising the cost of healthy behaviors.

Suggested Citation

  • Elisa Macchi, 2022. "Worth your weight: experimental evidence on the benefits of obesity in low-income countries," ECON - Working Papers 401, Department of Economics - University of Zurich.
    • Handle: RePEc:zur:econwp:401
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    More about this item

    Keywords

    Obesity; status; asymmetric information;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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