Can Higher Gas Prices Reduce Obesity in America?

September 16th, 2007

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An interesting new paper by Professor Charles Courtemanache argues just that,

A causal relationship between gasoline prices and obesity is possible through mechanisms of increased exercise and decreased eating in restaurants. I use a fixed effects model to explore whether this theory has empirical support, finding that an additional $1 in real gasoline prices would reduce obesity in the U.S. by 15% after five years, and that 13% of the rise in obesity between 1979 and 2004 can be attributed to falling real gas prices during this period. I also provide evidence that that the effects occurs both by increasing exercise and by lowering the frequency with which people at restaurants. [link]

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