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Imitative Obesity Imitative Obesity EEA Conference in Milan EEA Conference in Milan Sunday 31 August 2008 Sunday 31 August 2008 David G. David G. Blanchflower Blanchflower Dartmouth College; Bank of England; Dartmouth College; Bank of England; and NBER and NBER Andrew J. Oswald Andrew J. Oswald University of Warwick University of Warwick Bert Van Bert Van Landeghem Landeghem

Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

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Imitative Obesity EEA Conference in Milan Sunday 31 August 2008. David G. Blanchflower Dartmouth College; Bank of England; and NBER Andrew J. Oswald University of Warwick Bert Van Landeghem University of Leuven. - PowerPoint PPT Presentation

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Page 1: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Imitative ObesityImitative Obesity

EEA Conference in MilanEEA Conference in Milan

Sunday 31 August 2008Sunday 31 August 2008

David G. BlanchflowerDavid G. BlanchflowerDartmouth College; Bank of England; and NBERDartmouth College; Bank of England; and NBER

Andrew J. OswaldAndrew J. OswaldUniversity of WarwickUniversity of Warwick

Bert Van LandeghemBert Van LandeghemUniversity of LeuvenUniversity of Leuven

Page 2: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

We would like to understand the rise in obesity in the western (and other) nations.

Page 3: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Why have weights gone up?

Page 4: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Why have weights gone up?

Page 6: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

The idea in the paper

Page 7: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

The idea in the paper

People’s utilities may depend, in poorly understood ways, on relative weight.

Page 8: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

If so, comparison effects can in principle create ‘obesity spirals’..

.. while those with convex utility get thinner.

Page 9: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

In the data, we find:

• perceptions do depend on others’ BMI

• dieting is correlated with relative weight

• some evidence that others’ weights affect life-satisfaction.

Page 10: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

First: some background.

Page 11: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Economics is changing

Researchers are studying mental well-being.

We are drawing closer to psychology and medicine.

Page 12: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

There is evidence in Britain, the Netherlands and Belgium that mental strain is increasing.

• Verhaak, P.F.M., Hoeymans, N. and Westert, G.P. (2005). ‘Mental health in the Dutch population and in general practice: 1987-2001’, British Journal of General Practice, vol. 55, pp.770-775.

• Hodiamont, P.P.G., Rijnders, C.A.T., Mulder, J. and Furer, J.W. (2005). ‘Psychiatric disorders in a Dutch Health Area: a repeated cross-sectional survey.’ Journal of Affective Disorders, vol. 84, pp.77-83.

Page 13: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Consider weight and well-being.

Page 14: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

In work on BHPS with Nick Powdthavee

Page 15: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

In work on BHPS with Nick Powdthavee

.. we find that BMI enters negatively in regressions for

Life satisfactionHappinessWell-being measured by GHQ

Oswald-Powdthavee “Obesity, Unhappiness and the Challenge of Affluence: Theory and Evidence”, Economic Journal, 2007.

Page 16: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

So again…

then why have people’s weights risen?

Page 17: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

• Christakis, N. A. and J. H. Fowler "The spread of obesity in a large social network over 32 years." New England Journal of Medicine, 2007.

• Clark, A.E. and A.J. Oswald "Comparison-concave utility and following behaviour in social and economic settings", Journal of Public Economics, 1998

Page 18: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Thinking how imitation could work

Page 19: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Thinking how imitation could work

Using proxy utility data, say, could we show that..?

Happiness = f(BMI relative to others’ BMI, controls)

Page 20: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

If so, and utility is concave in relative position, it is rational for people to emulate each other.

Page 21: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

A general point about the mathematics of imitation

Page 22: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

A general point about the mathematics of imitation

Caring about relative things is not sufficient to give us Keeping up with the Joneses.

Page 23: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

What matters is the sign of the second derivative of the utility function with respect to status.

Page 24: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Concavity leads to imitation.

Page 25: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Convexity produces deviance.

Page 26: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

A general point about the mathematics of imitation

Say a person is choosing an action a to solve:

Maximize v(a – a*) – c(a)

where a* is what everyone else is doing.

But then if v(.) is concave (convex) in status, it is rational to act similarly to (deviantly from) the herd.

Page 27: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Status may come from rank

• Assume the person rationally chooses body weight. He or she picks b to maximize

s.t.

where r is ordinal rank in the slimness distribution in society, v(r) is the utility from that rank, u(b) is the direct benefit from high body weight, and a constant c is the marginal cost of body weight.

cbbrvbuV ))(()(

b

b

dxxfbr )()(

Page 28: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Empirically, is utility convex or concave in status?

Page 29: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Empirically, is utility convex or concave in status?

Not easy to know.

Wimbledon case evocative.

Page 30: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

DataData

• Eurobarometers #64.3 (2005) – 29 countries. EU-27 + Croatia + Turkey

• Eurobarometer #44.3 (1996) – 15 EU countries

• Health Survey of England, 2004

• British Cohort Study, 2004/5 sweep

• National Child Development Study, 2004/5

• German Socio-Economic Panel, 2002, 2004 & 2006

Page 31: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 1. Self-reported BMI by country Table 1. Self-reported BMI by country

• BMI=kilos/ height in metres squared

• Highest for men and women in Malta

• Lowest for men in Latvia and Turkey (24.8)

• Lowest for women in Italy (23.5)

Page 32: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

A natural question

How do people perceive themselves?

Page 34: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 2. Feeling overweight Table 2. Feeling overweight

• Individuals in Eurobarometer #64.3 survey are also asked

• “Would you say that your current weight is: Too low; About right; Too high?”

Page 35: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 2. Feeling overweight Table 2. Feeling overweight

• Individuals in Eurobarometer #64.3 survey are also asked

• “Would you say that your current weight is: Too low; About right; Too high?”

• 31% of male Europeans, and 43% of female Europeans, say their own weight is too high

Page 36: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 3. Feeling overweight: relative BMITable 3. Feeling overweight: relative BMI • Relative BMI = BMI divided by the

average BMI from their country*age band*gender cell.

• Age bands are defined in twelve five year age groupings from <20; 20-24 and so on in five year bands up to 69 and then 70 and over.

• Regardless of absolute BMI, those reporting fatness relative to their peers are more concerned about their own weight. Relative weight matters.

Page 37: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 3. Feeling Table 3. Feeling overweightoverweight - ordered logit - ordered logit

All Male Female

BMI .7734 1.0494 .9869

BMI2 -.0074 -.0080 -.0111

Relative BMI 3.7325 -1.7354* 2.6194

N 27,092 12,199 14,893

* Coefficient insignificantly different from zero

Page 38: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 3. Feeling overweight - ordered logit Table 3. Feeling overweight - ordered logit

• Decreasing effect in age, particularly for women.

• The most highly educated Europeans are more likely to view themselves as overweight

• BMI enters with an inverted U-shape with a turning point around 50

Page 39: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 4. Table 4. DisDissatisfaction with weight and dieting - satisfaction with weight and dieting - 19961996

• Here are some statements. For each of these, please tell me if you agree strongly, agree slightly, disagree slightly or disagree strongly?

1) I am very satisfied with my body weight. Agree strongly=1 … disagree strongly=5

2) Over the last 12 months, have you been on a diet, or not?

• 24% of women and 13% of men had been on a diet

Page 40: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 5. Table 5. DisDissatisfaction with weight - ordered logitsatisfaction with weight - ordered logit

Male Female

BMI .2387* .6065

BMI2 .0005* -.0072

Relative BMI -.7220* 1.2250

N 7,245 7035

* Coefficient insignificantly different from zero

Page 41: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 5. Table 5. DisDissatisfaction with weight – relative BMIsatisfaction with weight – relative BMI

• Among Europe’s females, a high value of relative BMI is a predictor of those who say they are dissatisfied

• Highly educated people are more likely, ceteris paribus, to be dissatisfied with their weight.

Page 42: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Table 5. Recently been on a diet - dprobitTable 5. Recently been on a diet - dprobit

Male Female

BMI .0176 .0239

BMI2 -.0001 -.0004

Relative BMI .1595 .6001

N 7,251 7,045

* Coefficient insignificantly different from zero

Page 43: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Is there longitudinal evidence?

Page 44: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

German Socio-Economic PanelGerman Socio-Economic Panel

• The GSOEP is a representative longitudinal study of private households.

• The panel was started in 1984. In June 1990 the GSOEP was extended to the GDR.

• There are 20,229 observations for 2002, 18,913 for 2004 and 20,704 for 2006.

Page 45: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Fixed effect models using GSOEPFixed effect models using GSOEP

• Table 8 gives non-linear impact of BMI using OLS

• Inverted U-shape in BMI

• Also present in the fixed effects

Page 46: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Fixed effect models using GSOEP – relative BMIFixed effect models using GSOEP – relative BMI

• Table 9 includes log of BMI

• It also includes log of the average BMI by 16 federal states and 3 year cells

• Log BMI in the fixed effects is insignificant for women and positive for men

• The coefficient on Log Average BMI is significant for men. The result implies that, after differencing out person-effects, life satisfaction is higher among those men who live in an area populated by fatter individuals

Page 47: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Others’ weight affects well-being

Page 48: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Summing up

Page 49: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Conclusions - 1Conclusions - 1

• It may be that people’s utility functions contain relative BMI.

• If so, this is consistent, under certain conditions, with the idea of obesity imitation or contagion.

• One third of Europe’s population think of themselves as overweight.

Page 50: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Conclusions - 2Conclusions - 2

• There is a negative relationship between BMI and happiness in cross-sections.

• For German males, in a fixed-effects framework, life satisfaction is greater among those who live in places where other people tend to be fatter.

• Consistent with Christakis and Fowler, weight comparisons seem to matter.

Page 52: Imitative Obesity EEA Conference in Milan Sunday 31 August 2008

Imitative ObesityImitative Obesity

EEA Conference in MilanEEA Conference in Milan

Sunday 31 August 2008Sunday 31 August 2008

David G. BlanchflowerDavid G. BlanchflowerDartmouth College; Bank of England; and NBERDartmouth College; Bank of England; and NBER

Andrew J. OswaldAndrew J. OswaldUniversity of WarwickUniversity of Warwick

Bert Van LandeghemBert Van LandeghemUniversity of LeuvenUniversity of Leuven