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Tier 4 — Narrative / commentaryPeer-reviewed

An economy of scales: A selective review of obesity's economic causes, consequences, and solutions

John Cawley

Journal of Health Economics · 2015

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Summary

This 2015 economic narrative review synthesises evidence on obesity as a multifactorial economic problem, examining structural determinants (food pricing, income, education, social effects), documented economic consequences (wage penalties, medical costs, employment effects), and the estimated effectiveness of market-based interventions (taxes, subsidies, information, incentives). The review finds that obesity likely results from multiple modest economic factors rather than a single dominant cause, and that individual policy interventions show only modest weight effects, suggesting a portfolio approach is needed.

Regional applicability

The review focuses primarily on United States economic research and policy contexts, though the analytical framework and economic mechanisms examined are broadly applicable to United Kingdom and other high-income food systems. However, direct applicability of effect sizes and policy recommendations would require consideration of differences in food pricing structures, welfare systems, healthcare financing, and obesity prevalence between countries.

Key measures

Obesity prevalence and trends; wage effects of obesity; employment probability; medical care costs; externalities through health insurance; effectiveness of food taxes, menu labelling, and financial incentives on weight change

Outcomes reported

The review examined economic research on obesity measurement, trends, causes (food pricing, assistance programmes, income, education, macroeconomic conditions, peer effects), and consequences (lower wages, reduced employment probability, higher medical costs). It evaluated economic interventions including food taxes, subsidies for physical activity programmes, and financial incentives for weight loss.

Theme
Policy, governance & rights
Subject
Food & agricultural policy
Study type
Narrative Review
Study design
Narrative review
Source type
Peer-reviewed study
Status
Published
Geography
United States
System type
Food supply chain
DOI
10.1016/j.jhealeco.2015.03.001
Catalogue ID
SNmqx9jnpq-cmxoxz

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