NBER Reporter NATIONAL BUREAU OF ECONOMIC RESEARCH Reporter OnLine at: www.nber.org/reporter 2009 Number 1 Program Report IN THIS ISSUE Program Report Health Economics Health Economics 1 Research Summaries Michael Grossman * Electricity Pricing … 9 Re-evaluating Learning 12 Teen and Non-Marital Childbearing 16 Organizations in the Aggregate Economy 19 The NBER’s Program in Health Economics focuses on the deter- minants of health. Two areas of particular interest are the economics NBER Profiles 22 of obesity and the economics of substance use. The program members’ Conferences 24 research has been widely supported by federal research grants and by NBER News 27 private foundations. Program and Working Group Meetings 31 Bureau Books 35 The Economics of Obesity Genetic factors cannot account for the rapid increase in obesity since 1980 — these factors change slowly over long periods of time. Therefore, economists have a role to play in examining the determi- Changing Content for nants and consequences of this trend, even though the factors at work NBER Reporter are complex, and the policy prescriptions are by no means straightfor- ward. Childhood obesity is especially detrimental, because its effects This issue of the NBERReporter breaks from the past carry over into adulthood. Shin Yi-Chou, Inas Rashad, and I estimate with regard to coverage of NBER Program meetings, the effects of fast-food restaurant advertising on television on obesity Working Group meetings, and other Conferences. among children and adolescents.1 Our results suggest that a ban on Historically, the Reporter included a list of the papers these advertisements would reduce the number of obese children ages presented at each of these NBER gatherings, along 3–11 in a fixed population by 18 percent and would reduce the num- with a summary of each paper. Beginning with this ber of obese adolescents ages 12–18 by 14 percent. Eliminating the tax issue, the Reporter lists the papers presented and deductibility of this type of advertising would produce smaller declines their authors, and provides readers with a link to a of between 5 and 7 percent in these outcomes, but would impose lower page on the NBER website that includes the paper’s costs on children and adults who consume fast food in moderation abstract, the name of the discussant if there was one because positive information about restaurants that supply this type of at the NBER meeting, and the research paper. This food would not be completely banned from television. new format for the Reporter makes it easier for read- Robert Kaestner and Xin Xu examine the association between ers to access the full-length research papers presented girls’ participation in high school sports and the physical activity, at NBER meetings and it recognizes the increasingly weight, and body mass and body composition of adolescent females prominent role of electronic archives for research publications of all types. We hope that you enjoy the * Grossman directs the NBER’s Program in Health Economics and is new Reporter format.. Distinguished Professor of Economics at the City University of New York Graduate Center. NBER Reporter • 2009 Number 1 during the 1970s when girls’ sports partici- pation was dramatically increasing as a result NBER Reporter of Title IX of the Educational Amendments of 1972.2 Title IX requires that programs and activities that receive funds from the Department of Education must operate in a non-discriminatory manner. Kaestner and Xu find that increases in girls’ participation in The National Bureau of Economic Research is a private, nonprofit research orga- high school sports, a proxy for expanded ath- nization founded in 1920 and devoted to objective quantitative analysis of the letic opportunities for adolescent females, are American economy. Its officers and board of directors are: associated with an increase in physical activ- President and Chief Executive Officer — James M. Poterba ity and an improvement in weight and body Controller — Kelly Horak mass among girls. In contrast, adolescent boys BOARD OF DIRECTORS experienced a decline in physical activity and Chairman — John S. Clarkeson an increase in weight and body mass during Vice Chairman — Kathleen B. Cooper the period when girls’ athletic opportunities Treasurer — Robert Mednick were expanding. Taken together, these results DIRECTORS AT LARGE strongly suggest that Title IX and the increase Peter Aldrich Jessica P. Einhorn Alicia H. Munnell in athletic opportunities among adolescent Elizabeth E. Bailey Mohamed El-Erian Rudolph A. Oswald females it engendered had a beneficial effect Richard Berner Jacob A. Frenkel Robert T. Parry John Herron Biggs Judith M. Gueron James M. Poterba on the health of adolescent girls. John S. Clarkeson Robert S. Hamada John S. Reed Rusty Tchernis, Daniel Millimet, and Don R. Conlan Karen N. Horn Marina v. N. Whitman Muna Husain provide conflicting evidence Kathleen B. Cooper John Lipsky Martin B. Zimmerman Charles H. Dallara Laurence H. Meyer with regard to the effectiveness of school George C. Eads Michael H. Moskow nutrition programs in combating childhood obesity.3 They find that the School Breakfast DIRECTORS BY UNIVERSITY APPOINTMENT Program is a valuable tool in the current bat- George Akerlof, California, Berkeley Joel Mokyr, Northwestern tle against obesity. On the other hand, the Jagdish W. Bhagwati, Columbia Andrew Postlewaite, Pennsylvania National School Lunch Program exacerbates Glen G. Cain, Wisconsin Uwe E. Reinhardt, Princeton Ray C. Fair, Yale Nathan Rosenberg, Stanford the current epidemic. Franklin Fisher, MIT Craig Swan, Minnesota Turning to one consequence of obesity in Mark Grinblatt, California, Los Angeles David B. Yoffie, Harvard adulthood, Erdal Tekin and Roy Wada con- Saul H. Hymans, Michigan Arnold Zellner, Chicago Marjorie B. McElroy, Duke sider whether the obese pay a penalty in terms of lower wage rates.4 They point out that DIRECTORS BY APPOINTMENT OF OTHER ORGANIZATIONS previous research in this area relied on body Jean Paul Chavas, Agricultural and Applied Economics Association Gail D. Fosler, The Conference Board weight or body mass index (BMI, defined Martin Gruber, American Finance Association as weight in kilograms divided by height Timothy W. Guinnane, Economic History Association in meters squared5) for measuring obesity Arthur B. Kennickell, American Statistical Association Thea Lee, American Federation of Labor and despite the growing agreement in the medi- Congress of Industrial Organizations cal literature that they represent misleading William W. Lewis, Committee for Economic Development measures of obesity because of their inabil- Robert Mednick, American Institute of Certified Public Accountants Angelo Melino, Canadian Economics Association ity to distinguish between body fat and fat- Harvey Rosenblum, National Association for Business Economics free body mass. Using these two variables, John J. Siegfried, American Economic Association they find that increased body fat is unambig- The NBER depends on funding from individuals, corporations, and private foun- uously associated with decreased wages for dations to maintain its independence and its flexibility in choosing its research both males and females. This result is in con- activities. Inquiries concerning contributions may be addressed to James M. Poterba, President & CEO, NBER 1050 Massachusetts Avenue, Cambridge, MA trast to the mixed and sometimes inconsistent 02138-5398. All contributions to the NBER are tax deductible. results from the previous research using BMI. They also find new evidence indicating that The Reporter is issued for informational purposes and has not been reviewed by the Board of Directors of the NBER. It is not copyrighted and can be freely repro- a higher level of fat-free body mass is consis- duced with appropriate attribution of source. Please provide the NBER’s Public tently associated with increased hourly wages. Information Department with copies of anything reproduced. The body composition measures they employ Requests for subscriptions, changes of address, and cancellations should be sent represent significant improvements over the to Reporter, National Bureau of Economic Research, Inc., 1050 Massachusetts previously used measures because they allow Avenue, Cambridge, MA 02138-5398. Please include the current mailing label. 2 NBER Reporter • 2009 Number 1 for the effects of fat and fat free com- the effect of health insurance on weight Cigarettes ponents of body composition to be sep- outcomes. Bhattacharya, Bundorf, arately identified. Noemi Pace, and Sood provide this In two related studies, Donald Clearly, obesity carries a high per- missing piece by showing that both pri- Kenkel, Philip DeCicca, Alan Mathios, sonal cost. But does it carry a high vately insured individuals and those and colleagues question the consensus enough social cost to make it a con- with Medicaid coverage have a larger in the literature concerning the inverse cern of public policy? The case for body mass index and a higher prob- relationship between the price of ciga- government intervention in the food ability of being obese than persons rettes and various measures of cigarette choices of its citizens is weakened if with no health insurance.11 Rashad and consumption by teenagers and young fully informed consumers are taking Sara Markowitz report similar results adults. Controlling for a direct mea- account of all the costs of their food for BMI but not for the probability sure of state- and time-specific