A1268
Title: Structural tranformation and the obesity epidemic: Growth and taxation
Authors: Evangelos Dioikitopoulos - Kings College London (United Kingdom) [presenting]
Abstract: We unify existing theories and empirical evidence on the origins of obesity and examine the effects of fiscal policy on the dynamic evolution of weight. We build a dynamic general equilibrium growth model, with two sectors, one producing food and the other producing a composite consumption good. Weight is a function of rational choice as well as labor allocation between the two sectors. By estimating utility from weight and calibrating the US economy we show that (i) technological advances in agriculture decrease food prices and increase weight but not necessarily through higher food consumption but through increases weight levels through lower food prices; (ii) steady state food consumption increases due to a price substitution effect but weight increases due to higher calorie expenditure; (iii) increasing taxation on food decreases food consumption and weight levels in equilibrium. Labor reallocation towards the less sedentary sector on one hand and higher income on the other function as contradictory forces.
