IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

The skinny on big box retailing: Wal-Mart, warehouse clubs, and obesity

  • Courtemanche, Charles
  • Carden, Art

Research attributes much of the rise in obesity to technological progress reducing the cost of food consumption. We examine this hypothesis in the context of Walmart Supercenters, whose advancements in retail logistics have translated to substantial reductions in food prices. Using data from the Behavioral Risk Factor Surveillance System matched with Walmart Supercenter entry dates and locations, we examine the effects of Supercenters on body mass index (BMI) and obesity. We account for the endogeneity of Walmart Supercenter locations with an instrumental variables approach that exploits the unique geographical pattern of Supercenter expansion around Walmart’s headquarters in Bentonville, Arkansas. An additional Supercenter per 100,000 residents increases average BMI by 0.25 units and the obesity rate by 2.4 percentage points. These results imply that the proliferation of Walmart Supercenters explains 11% of the rise in obesity since the late 1980s, but the resulting increase in medical expenditures offsets only a small portion of consumers’ savings from shopping at Supercenters.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://mpra.ub.uni-muenchen.de/25326/1/MPRA_paper_25326.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25326.

as
in new window

Length:
Date of creation: 15 Dec 2009
Date of revision:
Handle: RePEc:pra:mprapa:25326
Contact details of provider: Postal:
Ludwigstraße 33, D-80539 Munich, Germany

Phone: +49-(0)89-2180-2459
Fax: +49-(0)89-2180-992459
Web page: https://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Thomas J. Holmes, 2008. "The Diffusion of Wal-Mart and Economies of Density," NBER Working Papers 13783, National Bureau of Economic Research, Inc.
  2. Christopher J. Ruhm, 2003. "Healthy Living in Hard Times," NBER Working Papers 9468, National Bureau of Economic Research, Inc.
  3. Andrew J. Plantinga & Stephanie Bernell, 2007. "The Association Between Urban Sprawl And Obesity: Is It A Two-Way Street?," Journal of Regional Science, Wiley Blackwell, vol. 47(5), pages 857-879.
  4. Jay Bhattacharya & Neeraj Sood, 2005. "Health Insurance and the Obesity Externality," NBER Working Papers 11529, National Bureau of Economic Research, Inc.
  5. Russell S. Sobel & Andrea M. Dean, 2006. "Has Wal-Mart Buried Mom and Pop?: The Impact of Wal-Mart on Self Employment and Small Establishments in the United States," Working Papers 06-05 Classification- JEL, Department of Economics, West Virginia University.
  6. 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.
  7. Michael L. Anderson & David A. Matsa, 2011. "Are Restaurants Really Supersizing America?," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 152-88, January.
  8. Basker, Emek, 2011. "The Causes and Consequences of Wal-Mart’s Growth," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 110—134.
  9. Christopher J. Ruhm, 1996. "Are Recessions Good For Your Health?," NBER Working Papers 5570, National Bureau of Economic Research, Inc.
  10. David Cutler & Edward Glaeser & Jesse Shapiro, 2003. "Why Have Americans Become More Obese?," NBER Working Papers 9446, National Bureau of Economic Research, Inc.
  11. Inas Rashad & Michael Grossman & Shin-Yi Chou, 2005. "The Super Size of America: An Economic Estimation of Body Mass Index and Obesity in Adults," NBER Working Papers 11584, National Bureau of Economic Research, Inc.
  12. Carden, Art & Courtemanche, Charles & Meiners, Jeremy, 2008. "Painting the Town Red? Wal-Mart and Values," Working Papers 09-5, University of North Carolina at Greensboro, Department of Economics, revised 01 Apr 2009.
  13. Emek Basker, 2007. "When Good Instruments Go Bad," Working Papers 0706, Department of Economics, University of Missouri.
  14. Emek Basker, 2002. "Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion," Working Papers 0215, Department of Economics, University of Missouri, revised Jan 2004.
  15. Ranney, Christine K. & McNamara, Paul E., 2002. "Do Healthier Diets Cost More?," Working Papers 127305, Cornell University, Department of Applied Economics and Management.
  16. Jerry Hausman & Ephraim Leibtag, 2004. "CPI Bias from Supercenters: Does the BLS Know that Wal-Mart Exists?," NBER Working Papers 10712, National Bureau of Economic Research, Inc.
  17. Darius Lakdawalla & Tomas Philipson, 2002. "The Growth of Obesity and Technological Change: A Theoretical and Empirical Examination," Working Papers 0203, Harris School of Public Policy Studies, University of Chicago.
  18. Art Carden & Charles Courtemanche, 2009. "Wal-Mart, Leisure, And Culture," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 450-461, October.
  19. Emek Basker & Michael Noel, 2007. "The Evolving Food Chain: Competitive Effects of Wal-Mart's Entry into the Supermarket Industry," Working Papers 0712, Department of Economics, University of Missouri.
  20. Art Carden & Charles Courtemanche & Jeremy Meiners, 2009. "Does Wal-Mart reduce social capital?," Public Choice, Springer, vol. 138(1), pages 109-136, January.
  21. Eid, Jean & Overman, Henry G & Puga, Diego & Turner, Matthew A, 2007. "Fat City: Questioning the Relationship Between Urban Sprawl and Obesity," CEPR Discussion Papers 6191, C.E.P.R. Discussion Papers.
  22. Darius Lakdawalla & Tomas Philipson & Jay Bhattacharya, 2005. "Welfare-Enhancing Technological Change and the Growth of Obesity," American Economic Review, American Economic Association, vol. 95(2), pages 253-257, May.
  23. Gruber, Jonathan & Frakes, Michael, 2006. "Does falling smoking lead to rising obesity?," Journal of Health Economics, Elsevier, vol. 25(2), pages 183-197, March.
  24. David Neumark & Junfu Zhang & Stephen Ciccarella, 2006. "The Effects of Wal-Mart on Local Labor Markets," Working Papers 060711, University of California-Irvine, Department of Economics.
  25. Jerry Hausman & Ephraim Leibtag, 2005. "Consumer Benefits from Increased Competition in Shopping Outlets: Measuring the Effect of Wal-Mart," NBER Working Papers 11809, National Bureau of Economic Research, Inc.
  26. Stephan J. Goetz & Anil Rupasingha, 2006. "Wal-Mart and Social Capital," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1304-1310.
  27. Mark E Schaffer, 2005. "XTIVREG2: Stata module to perform extended IV/2SLS, GMM and AC/HAC, LIML and k-class regression for panel data models," Statistical Software Components S456501, Boston College Department of Economics, revised 22 Feb 2015.
  28. Ranney, Christine K. & McNamara, Paul E., 2002. "Do Healthier Diets Cost More?," 2002 Annual meeting, July 28-31, Long Beach, CA 19588, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  29. Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2006. "Reply to Jonathan Gruber and Michael Frakes," Journal of Health Economics, Elsevier, vol. 25(2), pages 389-393, March.
  30. Courtemanche, Charles, 2009. "Rising cigarette prices and rising obesity: Coincidence or unintended consequence?," Journal of Health Economics, Elsevier, vol. 28(4), pages 781-798, July.
  31. Odelia Rosin, 2008. "The Economic Causes Of Obesity: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 22(4), pages 617-647, 09.
  32. Michael J. Hicks, 2007. "Job Turnover and Wages in the Retail Sector: The Influence of Wal-Mart," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 137-160.
  33. Dube, Arindrajit & Lester, T. William & Eidlin, Barry, 2007. "Firm Entry and Wages: Impact of Wal-Mart Growth on Earnings Throughout the Retail Sector," Institute for Research on Labor and Employment, Working Paper Series qt22s5k4pv, Institute of Industrial Relations, UC Berkeley.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25326. 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: (Joachim Winter)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.