The Economics of Obesity
The Economics of Obesity
The government has recently become concerned about the economic forces behind the rise in obesity. How can economic models be used to understand the reasons for the
rise in obesity? What are the labour market consequence of the increase in obesity? What, if any, public policies should the government consider to reduce obesity
rates?
Suggested References:
Courtemancha, c, Heutel, G, and McAlvanah, P (2015) “Impatience, Incentives, and Obesity” Economic Journal, Vol 125(582), pp. 1 – 31.
Cawley, J (2004) “The Impact of Obesity on Wages.” Journal of Human Resources, 39(2): 451-474.
Cawley, J. (2013) “The Economics of Obesity” NBER Reporter, National Bureau of Economic Research (NBER), Cambridge, Mass., Issue 4, pp. 7-10
Hamermesh, Daniel (2009) “Grazing, Goods, and Girth: Determinants and Effects”, IZA Discussion Paper 4378.
Ruhm, CJ (2012) “Understanding Obesity and Overeating” Journal of Health Economics, 31(6), p. 781 – 796;
OR:
Question 2: Fairness, Trust, Reciprocity, and Wages
Neoclassical models typically assume workers are selfish; behavioural models in contrast assume that workers’ care about fairness and reciprocity. How does extending
the neoclassical model to consider fairness, trust, and reciprocity improve our understanding of wages and employment? When can paying a “fair’ wage be used to
motivate workers to work hard? How can trust and reciprocity help resolve the problem of incomplete contracts?
Suggested References:
Akerlof, GA (1982) “Labor Contracts as Partial Gift Exchange” The Quarterly Journal of Economics, Vol. 97(4), pp. 543 – 569.
Akerlof, GA, Yellan, JL (1990) “The Fair Wage-Effort Hypothesis and Unemployment” The Quarterly Journal of Economics, Vol. 105(2), pp. 255-283.
Cohn A, Fehr, E, and Goette, L (2015) Fair Wages and Effort Provision: Combining Evidence from a Choice Experiment and a Field Experiment” Management Science, Vol. 61
(8), pp. 1777 – 1794.
Falk, A, Kosfeld, M (2004) “Distrust: The Hidden Cost of Control” IZA Discussion Paper 1203 available: www.iza.org.