Fast food prices, obesity, and the minimum wage

Economics and Human Biology
Chad Cotti, Nathan Tefft

Abstract

Recent proposals argue that a fast food tax may be an effective policy lever for reducing population weight. Although there is growing evidence for a negative association between fast food prices and weight among adolescents, less is known about adults. That any measured relationship to date is causal is unclear because there has been no attempt to separate variation in prices on the demand side from that on the supply side. We argue that the minimum wage is an exogenous source of variation in fast food prices, conditional on income and employment. In two-stage least-squares analyses, we find little evidence that fast food price changes affect adult BMI or obesity prevalence. Results are robust to including controls for area and time fixed effects, area time trends, demographic characteristics, substitute prices, numbers of establishments and employment in related industries, and other potentially related factors.

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Citations

Dec 24, 2013·Gaceta sanitaria·Ana María López-Sobaler, Rosa María Ortega
Jul 6, 2013·Economics and Human Biology·Pedro A AlviolaJames Smartt
Sep 12, 2017·International Journal of Environmental Research and Public Health·Jennifer J OttenAdam Drewnowski
Jan 13, 2018·Annual Review of Public Health·Coady WingRicardo A Bello-Gomez
Mar 9, 2018·International Journal of Health Economics and Management·Elena Andreyeva, Benjamin Ukert
Oct 19, 2017·Nutrition Research Reviews·Hayley G JanssenLeonard Stevenson
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Nov 16, 2016·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Otto Lenhart

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