A growth model of weight preferences, food consumption and public policy

Copyright @ 2013 Brunel University.In this paper we unify existing theories and empirical evidence on the origins of obesity and examine the e¤ects of scal policy on the dynamic evolution of weight. We build a dynamic general equilibrium growth model, with two sectors, one producing food and the other producing a composite consumption good. Weight is a function of rational choice as well as labor allocation between the two sectors. By estimating utility from weight and calibrating the US economy we show that (i) technological advances in agriculture decrease food prices and increase weight but not necessarily through higher food consumption but through lower calorie expenditure, (ii) reducing capital taxation, initially depresses weight levels through higher food prices; steady state food consumption decreases due to a price substitution e¤ect but weight soars due to lower calorie expenditure, (iii) reducing taxation on food increases food consumption and weight levels in equilibrium. Labor reallocation towards the less sedentary sector on one hand and higher income on the other function as contradictory forces

Technological Progress, Time Perception and Environmental Sustainability

This paper explores the relationship among technological progress, environment and growth by combining endogenous efficiency of public abatement with endogenous discounting. Our model can feature two different balanced growth paths corresponding to different levels of environmental quality, which remains constant in the long-run although the economy grows. The multiple equilibria point to a non-monotonic relationship among technological progress, growth and the environment, as observed in the data. A Ramsey planner can implement the good equilibrium; however, under a positive technology shock, the economy achieves higher long-run growth at the cost of lower environmental quality (even if agents value the environment highly). This finding could help us explain why some advanced economies may not succeed in cleaning the environment effectively

Roads to prosperity without environmental poverty: The role of impatience

Generalitatde Cataluny