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The Causal Link Between Financial Incentives and Weight Loss – An Evidence-based Survey of the Literature

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  • Paloyo, Alfredo
  • Reichert, Arndt R.
  • Reinermann, Holger
  • Tauchmann, Harald

Abstract

Obesity and overweight are linked to diseases that cost society a significant amount of resources. While behavior modification can reduce the problem, instigating such lifestyle changes is an uneasy task. One potential way to reduce the problem is through the use of financial incentives. In this survey, we review the available evidence with a significant emphasis on studies that yield credible estimates of the effect of financial incentives on weight loss. We find that the scientific literature on the subject has not yet satisfactorily settled whether such a mechanism is effective at eliciting the desired behavioral and health outcomes. We therefore advocate a rigorous large-scale randomized experiment to provide reliable estimates of the effect.

Suggested Citation

  • Paloyo, Alfredo & Reichert, Arndt R. & Reinermann, Holger & Tauchmann, Harald, 2011. "The Causal Link Between Financial Incentives and Weight Loss – An Evidence-based Survey of the Literature," Ruhr Economic Papers 290, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:290
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    References listed on IDEAS

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    Cited by:

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    2. Augurzky, Boris & Bauer, Thomas K. & Reichert, Arndt R. & Schmidt, Christoph M. & Tauchmann, Harald, 2014. "Small Cash Rewards for Big Losers – Experimental Insights Into the Fight Against the Obesity Epidemic," Ruhr Economic Papers 530, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. repec:zbw:rwirep:0530 is not listed on IDEAS
    4. Augurzky, Boris & Bauer, Thomas K. & Reichert, Arndt R. & Schmidt, Christoph M. & Tauchmann, Harald, 2018. "Habit formation, obesity, and cash rewards," Ruhr Economic Papers 750, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Lucas Hafner & Harald Tauchmann & Ansgar Wübker, 2021. "Does moderate weight loss affect subjective health perception in obese individuals? Evidence from field experimental data," Empirical Economics, Springer, vol. 61(4), pages 2293-2333, October.
    6. Ouayogodé, Mariétou H., 2016. "Effectiveness of weight loss intervention in highly-motivated people," Economics & Human Biology, Elsevier, vol. 23(C), pages 263-282.
    7. Ryota Nakamura & Marc Suhrcke & Daniel John Zizzo, 2017. "A triple test for behavioral economics models and public health policy," Theory and Decision, Springer, vol. 83(4), pages 513-533, December.
    8. Boris Augurzky & Thomas K. Bauer & Arndt R. Reichert & Christoph M. Schmidt & Harald Tauchmann, 2012. "Does Money Burn Fat? – Evidence from a Randomized Experiment," Ruhr Economic Papers 0368, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. Paloyo, Alfredo R. & Reichert, Arndt R. & Reuss-Borst, Monika & Tauchmann, Harald, 2015. "Who responds to financial incentives for weight loss? Evidence from a randomized controlled trial," Social Science & Medicine, Elsevier, vol. 145(C), pages 44-52.
    10. Augurzky, Boris & Bauer, Thomas K. & Reichert, Arndt R. & Schmidt, Christoph M. & Tauchmann, Harald, 2012. "Does Money Burn Fat? Evidence from a Randomized Experiment," IZA Discussion Papers 6888, Institute of Labor Economics (IZA).
    11. repec:zbw:rwirep:0368 is not listed on IDEAS
    12. Manthri Savani, Manu, 2019. "Can commitment contracts boost participation in public health programmes?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).
    13. Edberg, Dana & Mukhopadhyay, Sankar & Wendel, Jeanne, 2019. "Incentive design to boost health for juveniles with Medicaid coverage: Evidence from a field experiment," Economics & Human Biology, Elsevier, vol. 33(C), pages 101-115.
    14. Yusi Gong & Taylor P Trentadue & Swastina Shrestha & Elena Losina & Jamie E Collins, 2018. "Financial incentives for objectively-measured physical activity or weight loss in adults with chronic health conditions: A meta-analysis," PLOS ONE, Public Library of Science, vol. 13(9), pages 1-16, September.
    15. Boris Augurzky & Thomas K.Bauer & Arndt R. Reichert & Christoph M. Schmidt & Harald Tauchmann, 2014. "Small Cash Rewards for Big Losers – Experimental Insights Into the Fight Against the Obesity Epidemic," Ruhr Economic Papers 0530, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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    More about this item

    Keywords

    Financial incentives; weight loss; obesity; randomized experiment; survey; Financial incentives; weight loss; obesity; randomized experiment; survey;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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