Hand-to-mouth consumption and calorie consciousness consequences for junk-food taxation Nathalie Mathieu-Bolh
By: Mathieu Bolh, Nathalie.
Material type: ArticlePublisher: 2021Subject(s): OBESIDAD | ALIMENTOS | CONSUMO | IMPUESTOS | MODELOS ECONOMETRICOS In: Public Finance Review v. 49, n. 2, March 2021, p. 167-220Summary: Junk-food taxes have mixed effects on obesity and junk-food consumption. We build a theoretical model to explain empirical results and better understand how to address the obesity crisis. In our framework, hand-tomouth consumers make an intertemporal choice between junk-food consumption and weight loss. Their choice depends on calorie consciousness, which is influenced by perceived after-tax relative prices and educational attainment. Thus, a junk-food tax modifies consumers’ intertemporal choice both through their budget constraint and calorie consciousness. As a result, the effect of the tax on body weight reflects competing income, intertemporal substitution, and calorie-consciousness effects. The model explains empirical observations such as the recent rise in obesity and differences in weight outcomes for different income levels. The model explains circumstances under which junk-food taxes can be effective or ineffective to reduce body weight as well as differences in elasticities of highcalorie food consumption for high- and low-income earners.Item type | Current location | Home library | Call number | Status | Date due | Barcode |
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Artículos | IEF | IEF | OP 581/2021/2-1 (Browse shelf) | Available | OP 581/2021/2-1 |
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Junk-food taxes have mixed effects on obesity and junk-food consumption. We build a theoretical model to explain empirical results and better understand how to address the obesity crisis. In our framework, hand-tomouth consumers make an intertemporal choice between junk-food consumption and weight loss. Their choice depends on calorie consciousness, which is influenced by perceived after-tax relative prices and educational attainment. Thus, a junk-food tax modifies consumers’ intertemporal choice both through their budget constraint and calorie consciousness. As a result, the effect of the tax on body weight reflects competing income, intertemporal substitution, and calorie-consciousness effects. The model explains empirical observations such as the recent rise in obesity and differences in weight outcomes for different income levels. The model explains circumstances under which junk-food taxes can be effective or
ineffective to reduce body weight as well as differences in elasticities of highcalorie food consumption for high- and low-income earners.
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