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3rd Year > Health Economics: Obesity > Flashcards

Health Economics: Obesity Flashcards

1
Q

Crawley (2015) explains the rate of obesity in 1960 to today in OECD countries?

A

1960- 15%

Today- 35%

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2
Q

Rate of obesity in the US and UK, according to Crawley (2015)?

A

USA- 35%

UK- 25%

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3
Q

What does obesity increase the chances of?

A

Mortality, diabetes, CVD, hypertension, asthma, cancel (Extra insulin)

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4
Q

What can obesity decrease?

A

Employment opportunities and productivity

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5
Q

What shape are the healthcare costs of obesity in men/women?

A

Men: U shaped
Women: J shaped

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6
Q

Why is obesity an economic decision?

A

: Individuals balance utility from current food intake with monetary expense. Disutility is given from future weight gain. Can change this behaviour is Benefits > Costs.

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7
Q

What is an obese BMI?

A

30+ (Overweight is above 25)

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8
Q

Classes of obesity?

A

Class 1 > 30
Class 2 > 35
Class 3 > 40

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9
Q

Problems with BMI?

A
  • Doesn’t measure fatness adipose

- Misclassifies average lean mass

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10
Q

Alternatives to BMI?

A

Waist-hip ratio

% of body fat (bio-electrical impendence)

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11
Q

What does Cutler (2003) say about exercise?

A

Rates of recreational exercise have increased in the US

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12
Q

How much have calories been said to increase?

A

220 according to surveys (little data, measurement errors)

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13
Q

Why did Archer (2013) say it is hard to measure calorie intake?

A

Reporting errors and protocol changes, some people’s reported calorie intake is “not physiologically plausible”.

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14
Q

What is the neoclassical theory of weight?

A

Weight is a constrained optimisation problem. Utility balance, present bias. Rational choice is to overeat

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15
Q

What is the utility function?

A

Max: U ( W ( f,s ) ,f ,c ) s.t c+pf=I

Utility, weight, food, exercise, consumption, price, income

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16
Q

When would the ideal weight W0 be chosen?

A

Chosen if it was costless to obtain and if food gave no utility.

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17
Q

What type of goods are food and exercise?

A

Normal goods, with a diminishing marginal utility

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18
Q

What shape is the utility curve for weight?

A

Non-monotonic (inverted U shape)

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19
Q

What does the utility curve balance?

A

Choice of calories balances weight effect and the joy of eating, against the foregone consumption of alternative goods

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20
Q

What does a reduction in food prices lead to?

A

Reduced consumption of other goods (increasing Uc)
Increased food consumption (decreasing Uf)
Increases to weight gain

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21
Q

Food prices for 1997 to 2007 examples?

A

Coke 2L: Down 34.9%
Pizza Hut 12inch: Down 17%
Fresh fruit/veg: Above the rate of inflation

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22
Q

Causes of obesity

A

Sedentary work, mass food preparation, reduction in food prices, increased consumption

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23
Q

Cutler (2003) change in calorie consumption, 1978 to 1998?

A

265 + for men
143 + for women
Snacks the major increase

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24
Q

Curie et al (2010) paper on obesity?

A

If fast food place is within 0.1 miles of the school =+obesity, =+100 calories a day compared to 0.25 miles.
No difference between 0.25 and 0.5 miles.

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25
Q

Ogden, 2010 paper on education and obesity?

A

Increase in education leads to healthier individuals, more prevalent in women (College, 24%, high school 42%)
Men (27% and 32%)

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26
Q

What did Clark and Royer, 2013, find?

A

School leaving age change from 14 to 16 had no impact on BMI

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27
Q

What did Brunello, 2013, link with education?

A

School leaving age changes across Europe. No effect for men. Women 10% extra education, led to a 1.84% lower BMI

28
Q

How does peer pressure affect obesity?

A

Fitness for men improves

Weight for women

29
Q

Yakusheva (2014) paper discovery on peer pressure?

A

Bandwagon effect discovered in college students. Sharing rooms, link shown of additional weight gain depending on their room shares baseline waistline.

30
Q

Is weight a normal good?

A

Higher income: Ambiguous effect on weight
+ if health/ appearance are normal goods
May be a U

31
Q

How does income affect weight in developed countries?

A

Low income, increase in income leads to a marginal weight gain. No evidence of this effect in middle income groups

32
Q

How does income affect weight in richer countries?

A

Rich countries use more productive tech: income and weight rise. Cannot explain the rise in obesity, should have fallen over time

33
Q

What did Akee (2013) show about income and BMI?

A

US tribe, casino payments ($4000) for those with tribal heritage. Study compared those who got 2 v 6 yrs. Small increase in BMI for the poorer families, no difference for the richer ones.

34
Q

How has women working been linked to obesity?

A

Women working has lead to rise in obesity. Less time to be spent preparing healthy meals etc but no difference in weight between working and non-working women.

35
Q

How did Ruhm (2005) link obesity and the economy?

A

“healthy living in hard times”

1% lower employment = 0.73% lower probability of obesity.

36
Q

Arkes (2009) obesity link to economy in teen men/women?

A

Male teens gain weight in strong economic times. Opposite is true for teenage women.

37
Q

What did Anderson (2003) say about working mothers and obesity?

A

Time constraints, and poorer food choices expected from working mothers, perhaps less time outside. Casual link found, however restricted to higher social class groups (with lower rates of obesity)

38
Q

What is Ruhm’s Dual Decision theory (2012)?

A

2 brain parts, ‘Deliberative’ rational decisions (Pre-fontal cortex). ‘Affective’ system, impulses. Lowers utility for people whose have ‘deliberative’ behaviour

39
Q

What is a Myopic preference?

A

Present bias

40
Q

How does impatience affect obesity?

A

Impatient individuals consume more and have a higher BMI

41
Q

Sign effect of discounting explained?

A

Consequences are discounted at a lower rate than benefits e.g £100 now = £158 but £100 = £133 in a year

42
Q

What is hyperbolic discounting?

A

Rates of time preferences are not constant but vary with the time horizon

43
Q

What is exponential discounting?

A

Rate of discounting is constant at all delays. £1 today (A) or £3 tomorrow (B) or £1 in a year (A) or £3 in a year and a day (B). Choose either AA or BB

44
Q

How can tech change be linked with obesity?

A

Reduces price/time costs associated with consumption. Usual price response (reduced delays affects discounters more!)

45
Q

Solutions to self control problems?

A

Gastric bands
Gym membership
Bond for weight loss

46
Q

What did Phillipson and Posner (1999) predict?

A

Obesity falls with development, self-limiting rise in obesity. Tech change can reduce costs of food, increase work time and weight may not grow indefinitely as sedentary lifestyle is outpaced by thinness demand

47
Q

Phillipson and Posner (1999) link between income and weight?

A

Non-monotonic link to utility, U shaped link between income and weight

48
Q

Negative relationship between obesity and wages?

A
  • Lowers wages (discrimination/ less productivity)
  • Lower wages causes obesity (cheaper foods)
  • Time preferences/genetics
49
Q

Cawley (2004) evidence on obesity and wages

A
  • Weight lowers wages for white women (65 pound + leads to 9% lower wages)
  • Black/Hispanic women and no men show no effect
50
Q

Rooch (2009) evidence on discrimination for obese people?

A

Used fake job adverts in Sweden, 8% less interviews for obese women, 6% for men

51
Q

Do all studies link employment and obesity?

A

Some studies find no effect on employment

52
Q

Should the government intervene in obesity?

A

Is it a private problem? Must be evidence of market failure to justify intervention

53
Q

What is a information deficit?

A

Free markets under produce public goods such as information

54
Q

How can governments help with the information deficit?

A
  • Regulate advertising

- Provide government sponsored information

55
Q

Why might more information not solve the deficit?

A

Time costly to use information, with many comparisons of goods people have been found to ignore the information

56
Q

McDonalds advertising budget in comparison to 5 a day promo?

A

1996 = $599 million

National Cancer Institute, 5 a day promotion = < $1 million

57
Q

What did Bollinger et al (2011) show about Starbucks calorie information?

A

Labels reduced Starbucks consumption by nearly 6%, no impact of beverages

58
Q

Ways governments can intervene due to lack of rationality?

A 
Paternalistic reasons (E.g. ban cigarettes for u18s, incentives for healthy eating) 
-Dual decision theory links
59
Q

How does obesity link with externalities?

A
  • Externalities occur if weight gain harms the welfare of other individuals (cost to taxpayer and premiums)
60
Q

Solutions to externalities from obesity?

A

Introduce a ‘fat tax’ although its hard to only tax excess calories so will harm the poorest
-Need to account for spill over effects, e.g. quitting smoking can increase calorie intake

61
Q

Why did Siediell (1995) argue Americans were fatter than Europeans?

A
  • Cheaper food
  • More TV
  • Lower land prices
  • More suburbanized
  • Lower gas prices/ more car usage
62
Q

Forman (2016) examples of modern tech which could help with obesity?

A
  • Fitness trackers (Easier to track)
  • Video conferencing with weight control experts (reduce cost/ time/travel)
  • Games for weight loss (e.g. wii fit, pokemon go)
  • Apps
  • Brain training, control training on computers can alter behaviour
63
Q

Did Chen’s (2014) paper find modern weight loss techniques work?

A

Mixed results: 6 of 14 studies found BMI in the short-term (video games, e-learning etc)

64
Q

Dam (2008) other reasons for obesity?

A
  • moral hazard
  • role of network
  • habitual behaviour
65
Q

What is the circle of discontent? Marks (2015)?

A

Health is regulated by homeostasis which maintains equilibrium using feedback optimum functioning of the organism. obesity imbalance is attributed to a ‘Circle of Discontent’, a system of feedback loops linking weight gain, body dissatisfaction, negative affect and over-consumption.

66
Q

What does Mark (2015) suggest will halt the obesity crisis?

A
  • Stop victim-blaming, stigma and discrimination#
  • Remove the thin-ideal
  • Reduce consumption of energy-dense, low-nutrient foods
  • More plant-based diets.

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