Provocative Finding: Fast Food Doesn't Make You Fat
-
Font Size:
That's the provocative finding of a new working paper from Michael Anderson and David Matsa, economists at UC Berkeley and Northwestern, respectively.
It has become a truism that more people are eating out, and that the higher caloric content of food consumed at hamburger and pizza joints is making people a lot chunkier than they used to be. In fact, a number of studies have found a strong correlation between body weight and eating out.
But as any statistician will tell you, correlation doesn't prove causation.
To investigate the link, Matsa and Anderson turned to a natural experiment unknowingly created by the government decades ago. The Federal Highway Act of 1956 paved the way for over 42,000 miles of turnpike to be constructed in the United States. One of the unintended consequences of the new Interstate system was that, in rural areas, shopping centers that wanted to attract traveling drivers began to cluster around highways. For the residents of those areas, this development meant easier access to restaurants.
To see if this new supply changed obesity rates, Matsa and Anderson compared the Body Mass Index levels of those living close to highways (0 to 5 miles) with those living farther away (5 to 10 miles) and less accessible to restaurants. Using survey data from 11 states, Matsa and Anderson found no difference in the number of overweight, normal, and underweight people in the two areas, suggesting that access to restaurants was not making people fatter.
How can this be? If people are eating out more, and eating more high-calorie meals, why aren't they getting chubbier than those without easy access?
Matsa and Anderson next looked at data on individual eating habits from a survey conducted between 1994 and 1996. When eating out, people reported consuming about 35 percent more calories than when they ate in on average. But importantly, people reduced their caloric intake at home on days they ate. Overall, eating out increased daily caloric intake by only 24 calories.
Other research into the causes of rising obesity has centered on the role of technological change in modern economies. This paper from Darius Lakdawalla of RAND and Tomas Philipson of the University of Chicago estimates that 40 percent of the rise in obesity from the 1970's to the 1990's can be attributed cheaper food thanks to a more efficient agricultural industry. The other 60 percent was chalked up to more sedentary lifestyles.
Matsa and Anderson's findings suggest that New York City's move to force many restaurants to list the caloric content of menu items will likely have little to no effect on obesity levels.
The findings also suggest that I shouldn't feel so bad about having Taco Bell (YUM) for dinner three times a week.
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
ETFs In Focus
-
Editor's Picks
-
Most Popular
- Latest Commodities Indicator: Fed Policy
- Thoughts on Mohamed El-Erian's 'When Markets Collide'
- Priceline: More Headwinds Ahead
- PFI: PowerShares Dynamic Financials Outperforms Its Peers
- Interview with Kevin Carter, AlphaShares CEO
- Report from the Bond War Frontlines
- Full list of Editor's Picks »
- Has Jim Cramer Crossed the Line with Sirius XM? »
- Buffett Takes Berkshire Hathaway on $4 Billion Spending Spree »
- Wall Street Breakfast: Must-Know News »
- Wall Street Breakfast: Must-Know News »
- Wall Street Breakfast: Must-Know News »
- Sirius XM Belt Tightening Begins »
- Sirius XM Shorts Scrambling to Cover »
- No Leadership from Apple Right Now »
- Leave Sirius Alone! »
- AIG and the Lunacy of GAAP Reporting »
- Solarfun Power Holdings Co., Ltd. Q2 2008 Earnings Call Transcript »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Faith Doesn't Cut It - Cramer's Mad Money (8/29/08)
- Again With the Financials - Fast Money Recap (8/29/08)
- Potash One Will Be Top Performer in Agriculture Bull Market
- Luxury Retail Stocks: Two Worth a Look
- 11 Top Canadian Dividend Stocks Available as ADRs
- Natural Gas Is Oversold, and We Are Buying
- Libbey Inc.: The Glass is Half Full
- Mad Money Manual - Cramer's Mad Money (8/28/08)
- An Eye on Gustav - Fast Money Recap (8/28/08)
- Will You Look Back on Today as Your Greatest Missed Opportunity?
- Full list of Long Ideas »
- Priceline: More Headwinds Ahead
- The Option Arm Triplets: Dead Banks Walking
- Short Thesis Still Intact at FirstFed
- Short Story: Lehman
- 'Buy, But Sell' - What Are Analysts Thinking?
- Nordson's Rally Is Over, For Now - Barron's
- What's So Special About RadioShack? - Barron's
- Salesforce.com: It's All About the Guidance
- Three Casino Stocks Rolling Over
- New Web Site For Short Sellers: You Gotta Love Capitalism
- Full list of Short Ideas »
- Faith Doesn't Cut It - Cramer's Mad Money (8/29/08)
- Mad Money Manual - Cramer's Mad Money (8/28/08)
- Diversified Portfolios - Cramer's Mad Money (8/27/08)
- Gustav Moves Overdone - Cramer's Stop Trading! (8/27/08)
- GrafTech is Too Cheap - Cramer's Stop Trading
- The Rebound List - Cramer's Mad Money (8/26/08)
- The List - Cramer's Stop Trading! (8/26/08)
- Can't Turn My Back - Cramer's Lightning Round (8/26/08)
- The Pelosi Factor - Cramer's Mad Money (8/25/08)
- Buy Tech Weakness - Cramer's Lightning Round (8/25/08)
- Full list of Cramers Picks »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »




This article has 3 comments:
Having said that, the research paper (published five months ago) misses the point. Anderson and Matsa conclude correctly that it is the individual's eating habits that are the main contributor to obesity. Those that eat more at home will consume more outside as well.
The question the study should have addressed, that it so conveniently sidestepped, is whether or not 'portion sizes' in restaurants have influenced what is considered to be a normal calorie intake at home as well. In other words, has calorie intake per meal increased or decreased with the advent of fast food restaurants becoming the accepted norm and not the occasional splurge.
If people model their meals at home after servings sold in restaurants that compete with others for 'bets value' appearances, this could be a major contributor to the obesity issue.
CrossProfit