Impatience, Incentives, and Obesity

54 Pages Posted: 8 Oct 2011 Last revised: 10 Apr 2022

See all articles by Charles Courtemanche

Charles Courtemanche

University of North Carolina (UNC) at Greensboro - Department of Economics

Garth Heutel

University of North Carolina (UNC) at Greensboro - Department of Economics

Patrick McAlvanah

Federal Trade Commission - Bureau of Economics

Date Written: October 2011

Abstract

This paper explores the relationship between time preferences, economic incentives, and body mass index (BMI). Using data from the 1979 cohort of the National Longitudinal Survey of Youth, we first show that greater impatience increases BMI even after controlling for demographic, human capital, and occupational characteristics as well as income and risk preference. Next, we provide evidence of an interaction effect between time preference and food prices, with cheaper food leading to the largest weight gains among those exhibiting the most impatience. The interaction of changing economic incentives with heterogeneous discounting may help explain why increases in BMI have been concentrated amongst the right tail of the distribution, where the health consequences are especially severe. Lastly, we model time-inconsistent preferences by computing individuals'quasi-hyperbolic discounting parameters (β and δ). Both long-run patience (δ) and present-bias (β) predict BMI, suggesting obesity is partly attributable to rational intertemporal tradeoffs but also partly to time inconsistency.

Suggested Citation

Courtemanche, Charles and Heutel, Garth and McAlvanah, Patrick, Impatience, Incentives, and Obesity (October 2011). NBER Working Paper No. w17483, Available at SSRN: https://ssrn.com/abstract=1940328

Charles Courtemanche (Contact Author)

University of North Carolina (UNC) at Greensboro - Department of Economics ( email )

Greensboro, NC 27402-6165
United States

Garth Heutel

University of North Carolina (UNC) at Greensboro - Department of Economics ( email )

Greensboro, NC 27402-6165
United States

Patrick McAlvanah

Federal Trade Commission - Bureau of Economics ( email )

600 Pennsylvania Ave NW
Mail Drop HQ238
Washington, DC 20580
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
40
Abstract Views
1,084
PlumX Metrics