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American Economic Journal: Applied Economics: Vol. 3 No. 1 (January 2011)

AEJ: Applied Volume. 3, Issue 1 | leftPrevious ArticleNext Articleright

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Are Restaurants Really Supersizing America?

Article Citation

Anderson, Michael L., and David A. Matsa. 2011. "Are Restaurants Really Supersizing America?." American Economic Journal: Applied Economics, 3(1): 152-88.

DOI: 10.1257/app.3.1.152

Abstract

While many researchers and policymakers infer from correlations between eating out and body weight that restaurants are a leading cause of obesity, a basic identification problem challenges these conclusions. We exploit the placement of Interstate Highways in rural areas to obtain exogenous variation in the effective price of restaurants and examine the impact on body mass. We find no causal link between restaurant consumption and obesity. Analysis of food-intake micro-data suggests that consumers offset calories from restaurant meals by eating less at other times. We conclude that regulation targeting restaurants is unlikely to reduce obesity but could decrease consumer welfare. (JEL I12, I18, L51, L66)

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Authors

Anderson, Michael L. (U CA, Berkeley)
Matsa, David A. (Northwestern U)

JEL Classifications

I12: Health Production
I18: Health: Government Policy; Regulation; Public Health
L51: Economics of Regulation
L66: Food; Beverages; Cosmetics; Tobacco; Wine and Spirits

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