Health Economics Seminars (EUR)

Speaker(s)
Nicolas R. Ziebarth (Cornell University, United States)
Date
Tuesday, June 17, 2014
Location
Rotterdam

This paper presents a model that helps to explain the stylized fact that economic development goes along with increases in BMI and obesity rates. It incorporates the central concept of “novelty consumption.” By novelty consumption we refer to an economically driven increase in affordable food choices. We then empirically exploit the German reunification as a natural experiment of sharp increases in affordable food choices to elicit behavioral changes in the eating behavior of East Germans. Using objective health data we also study changing health conditions. After the reunification, East Germans increased their consumption of novel affordable food relative to West Germans. East Germans gained weight resulting in a higher incidence of obesity among East Germans. Objective health data show that these weight gains go along with higher levels of blood cholesterol and hypertension. This East-West gap persisted even fifteen years after the reunification.