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