The Role of Economics in Obesity

1
The Role of Economics in Obesity

• Richard A. Williams, Ph.D.
• Director, Division of Market Studies
• Center for Food Safety and Applied Nutrition
• U.S. Food and Drug Administration
• March 12, 2004

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Public Health Nutrition Three Pillars
Nutrition What should we eat?
Marketing How do we frame and deliver the
message?
Social Science What policy works?
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Social Sciences and Health and Safety Policy
Linking natural science with human responses

• Standard setting What is the efficient policy?
  What do consumers think is a safe or acceptable
  level? How will actual producer and consumer
  behavior change?
• Information What do people already know? What
  will they understand? How will they change their
  behavior?

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The Role of Economics in Public Health Policy

• When should any public intervention be
  considered?
• What is the public health cost of the problem?
• What is the most efficient intervention?
• What are the countervailing risks based on market
  reactions?
• Who obtains benefits, who bears costs?

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Countervailing risks

• If consumers/industry focus on low calorie, will
  they increase levels of saturated fat, trans
  fat, fiber?
• Will some consumers obsess about calories and
  intake will be insufficient (anorexia)?

6
How to gain weight

• No nutrient information unlabeled or
  incomprehensible
• Eat calorie dense food
• Eat excessive amounts of food
• Serving
• Meals
• Have no appetite depressant
• Motivation
• Pills
• Type of food
• Get insufficient exercise

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Food Labels
Ten years plus since NLEA...

• Two things missing
• Education component of NLEA
• Evidence of use/effectiveness limited

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Facts about Nutrition Labels

• Most people read them, at least sometimes.
• Do not want to spend a lot of time reading and/or
  interpreting them.
• Take health and nutrient content claims as
  signals of overall quality of product (halo).
• Not required in restaurants, deli sections.
• Not used to track nutrients by most.
• Limited evidence daily values rarely used.

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Information Theory

• Cost of acquiring, assimilating and deciding
• Multiple Nutrient Values, Single food

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Eating Healthy w/Labels
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Calories on Front per serving
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Healthy Lasagna
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Healthy Combo Meals Keyhole Symbol
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Healthy Combo MealsCalories
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Need for a Government Economic Committee on
Obesity

• Study existing literature on social and market
  factors contribution to overweight.
• Identify gaps in knowledge and sponsor major
  study.
• Make recommendations for interventions.