Carbonated Soft Drink Choices and Obesity
Although obesity is already the leading public health crisis in the U.S., with an estimated social cost of approximately $120 billion a year and growing (Rowley, 2004), obesity incidence continues to increase at an alarming rate (Kuhn, 2002). The main culprits are the increase in the consumption of high-calorie foods and beverages and a decrease in exercise (Kuhn, 2002; Allhouse, Frazao, and Tupening, 2002). Paralleling the increase in obesity is the increase in consumption of carbonated soft drinks (Center for Science in the Public Interest, 2005; DiMeglio and Mattes, 2000). Carbonated soft drinks (CSDs) are a very large part of the American diet. These wellliked drinks account for approximately 30% of all beverages (alcoholic and non-alcoholic) consumed in the U.S. (U.S. Department of Agriculture, 2008). In 2000, Americans spent $61 billion on CSDs (National Soft Drink Association, 2003) and CSDs are among the best-selling products in American grocery stores (Center for Science in the Public Interest, 2005). Also in 2000, more than 15 billion gallons were sold in the United States, which equals every American consuming at least one 12-ounce can per day or an average of 53 gallons per year (Squires, 2001). This article examines consumer CSD choices and their implications for obesity policy. Specifically, it assesses the importance of product and consumer heterogeneity on consumer choices using a random coefficients logit model (Berry, Levinsohn, and Pakes, 1995; hereafter BLP) and a national dataset that includes product and consumer characteristics. The estimated choice parameters are then linked to consumer body mass indexes (BMI) using a second-stage regression, and the effectiveness of tax policies assessed through counterfactual experiments.
(This abstract was borrowed from another version of this item.)
|Date of creation:||Oct 2009|
|Contact details of provider:|| Postal: 1376 Storrs Road, U-21, Storrs, Connecticut 06269-4021|
Web page: http://www.zwickcenter.uconn.edu
More information through EDIRC
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.:
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
- Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
- 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.
- Shin-Yi Chou & Michael Grossman & Henry Saffer, 2002. "An Economic Analysis of Adult Obesity: Results from the Behavioral Risk Factor Surveillance System," NBER Working Papers 9247, National Bureau of Economic Research, Inc.
- Fred Kuchler & Abebayehu Tegene & J. Michael Harris, 2005. "Taxing Snack Foods: Manipulating Diet Quality or Financing Information Programs?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 4-20.
When requesting a correction, please mention this item's handle: RePEc:zwi:fpcrep:124. 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: ()
If references are entirely missing, you can add them using this form.