Obesity: An economic and financial perspective

Obesity has been slowly increasing in most countries. This problem has increased to an extent that it is being labeled an epidemic and a leading cause of preventable deaths, second only to smoking. This paper provides a synthesis of the extant economics literature on obesity. More importantly, a framework outlining the economic causes and effects of obesity is discussed. The causes of obesity are many, including economic, technical, historical, and biological. The effects of obesity can be external or internal. These effects, in turn, can be direct or indirect. Recommendations for governments and businesses and directions for future research are discussed. Helpful comments from James Payne and research assistance of Richard Connelly are appreciated. Financial support from the Katie School of Insurance at Illinois State University is gratefully acknowledged.