IDEAS home Printed from https://ideas.repec.org/p/dpr/wpaper/0732.html
   My bibliography  Save this paper

Fat Debtors: Time Discounting, Its Anomalies, and Body Mass Index

Author

Listed:
  • Shinsuke Ikeda
  • Kang Myong-Il
  • Fumio Ohtake

Abstract

In view of the finding that debtors are likely to be more obese than nondebtors, we investigate whether interpersonal differences in body mass are, as in the case of debt behavior, related to those in time discounting and time discounting anomalies. The effects of time discounting on body massindex (BMI) and the probabilities of being obese, severely obese, and underweight are detected by incorporating three properties of intertemporal preferences: (i) impatience, measured by the level of the respondents' discountrate; (ii) hyperbolic discounting, where discount rates for the discounting of immediate future payoffs are higher than those of distant future payoffs; and (iii) the sign effect, wherein future negative payoffs are discounted at a lower rate than are future positive payoffs. We also find that body mass is non-monotonically correlated with age, income, and working hours. As a policy implication, body mass can potentially be controlled by changing the intertemporal structure of medical care costs.

Suggested Citation

  • Shinsuke Ikeda & Kang Myong-Il & Fumio Ohtake, 2009. "Fat Debtors: Time Discounting, Its Anomalies, and Body Mass Index," ISER Discussion Paper 0732, Institute of Social and Economic Research, Osaka University.
  • Handle: RePEc:dpr:wpaper:0732
    as

    Download full text from publisher

    File URL: http://www.iser.osaka-u.ac.jp/library/dp/2009/DP0732.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Michaud Pierre-Carl & van Soest Arthur H.O. & Andreyeva Tatiana, 2007. "Cross-Country Variation in Obesity Patterns among Older Americans and Europeans," Forum for Health Economics & Policy, De Gruyter, vol. 10(2), pages 1-32, December.
    2. Burkhauser, Richard V. & Cawley, John, 2008. "Beyond BMI: The value of more accurate measures of fatness and obesity in social science research," Journal of Health Economics, Elsevier, vol. 27(2), pages 519-529, March.
    3. Borghans, Lex & Golsteyn, Bart H.H., 2005. "Time Discounting and the Body Mass Index," IZA Discussion Papers 1597, Institute for the Study of Labor (IZA).
    4. Thaler, Richard, 1981. "Some empirical evidence on dynamic inconsistency," Economics Letters, Elsevier, vol. 8(3), pages 201-207.
    5. David M. Cutler & Edward L. Glaeser & Jesse M. Shapiro, 2003. "Why Have Americans Become More Obese?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 93-118, Summer.
    6. Glenn W. Harrison & Morten I. Lau & Melonie B. Williams, 2002. "Estimating Individual Discount Rates in Denmark: A Field Experiment," American Economic Review, American Economic Association, vol. 92(5), pages 1606-1617, December.
    7. 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.
    8. David M. Cutler & Edward Glaeser, 2005. "What Explains Differences in Smoking, Drinking, and Other Health-Related Behaviors?," American Economic Review, American Economic Association, vol. 95(2), pages 238-242, May.
    9. Laibson, David, 1998. "Life-cycle consumption and hyperbolic discount functions," European Economic Review, Elsevier, vol. 42(3-5), pages 861-871, May.
    10. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 443-478.
    11. Khwaja, Ahmed & Silverman, Dan & Sloan, Frank, 2007. "Time preference, time discounting, and smoking decisions," Journal of Health Economics, Elsevier, vol. 26(5), pages 927-949, September.
    12. Glaeser, Edward & Cutler, David, 2005. "What Explains Differences in Smoking, Drinking, and Other Health Related Behaviors," Scholarly Articles 2664274, Harvard University Department of Economics.
    13. John Cawley, 2004. "The Impact of Obesity on Wages," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    14. Komlos, John & Smith, Patricia K. & Bogin, Barry, 2003. "Obesity and the Rate of Time Preference: Is there a Connection?," Discussion Papers in Economics 60, University of Munich, Department of Economics.
    15. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    16. Loewenstein, George, 1987. "Anticipation and the Valuation of Delayed Consumption," Economic Journal, Royal Economic Society, vol. 97(387), pages 666-684, September.
    17. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
    18. Borghans, Lex & Golsteyn, Bart H.H., 2006. "Time discounting and the body mass index: Evidence from the Netherlands," Economics & Human Biology, Elsevier, vol. 4(1), pages 39-61, January.
    19. Uri Benzion & Amnon Rapoport & Joseph Yagil, 1989. "Discount Rates Inferred from Decisions: An Experimental Study," Management Science, INFORMS, vol. 35(3), pages 270-284, March.
    20. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 573-597.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Georgia S. Papoutsi & Andreas C. Drichoutis & Rodolfo M. Nayga Jr., 2013. "The Causes Of Childhood Obesity: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 743-767, September.
    2. Ping Gao & Junyi Shen, 2017. "An empirical analysis on the determinants of overweight and obesity in China," Applied Economics, Taylor & Francis Journals, vol. 49(20), pages 1923-1936, April.
    3. Ikeda, Shinsuke & Kang, Myong-Il & Ohtake, Fumio, 2010. "Hyperbolic discounting, the sign effect, and the body mass index," Journal of Health Economics, Elsevier, vol. 29(2), pages 268-284, March.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dpr:wpaper:0732. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fumiko Matsumoto). General contact details of provider: http://edirc.repec.org/data/isosujp.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.