May 2006: Obesity: An unintended consequence of taxes and the gender wage gap?, joint with Pere Gomis-Porqueras, Working Paper.
Abstract:
We perform a dynamic general equilibrium analysis of the
observed increase in the weight of the average American adult over the
1960-2005 period. Existing evidence suggests that this fifteen pound
increase in weight can be attributed to the dramatic raise in the
consumption of foods prepared away from home, which resulted in higher
caloric intake. We evaluate the impact of the observed trends in taxes
and in the gender wage gap on the caloric intake, food composition and
time use of American adults, by gender and marital status.
Surprisingly, we find that lower taxes and gender wage gap can account
for more than two thirds of the changes in calories consumed and food
composition observed in the data. Our general equilibrium analysis can
also account for some of the observed movements in time devoted to
market and food preparation activities, and reconciles the simultaneous
increase in price and consumption of foods prepared away from home.