EuHEA Seminar: Nathalie Mathieu-Bolh (University of Vermont)

Nathalie Mathieu-Bolh

Abstract

Our theoretical growth model studies the complex patterns of income and obesity, accounting for changes in behavior related to exercise. By combining Becker’s (1965) theory of time allocation with Veblen’s (1899) theory of conspicuous leisure, our model determines conditions for a static and a dynamic Kuznets curve for obesity. Both curves result from the interaction between the rising opportunity cost of exercise and peer effects. Both effects rise with income, whether we consider income cross-sections, or economic development over time. Focusing on calorie expenditure, we shed light on mechanisms explaining the rise and slowdown in obesity prevalence in the USA, and the correlation between obesity and income per worker (positive in developing countries and negative in industrialized countries). Our numerical simulations indicate that exercise choices have slowed down the rise in obesity prevalence, but do not generate a dynamic Kuznets curve in the USA. Peer effects would need to be larger than empirically observed for a dynamic Kuznets curve to occur. By contrast, we find a static Kuznets curve, which peak corresponds to a per worker capital stock 25% higher than its current average level, and an average weight of 187 pounds. We discuss policy implications of our findings.

Discussant: Zarko Kamalov (University of Technology Berlin)

Chair: Geir Godager (University of Oslo)