Access to Fast Food and Food Prices: Relationship with Fruit and Vegetable Consumption and Overweight among Adolescents April 2006 Lisa M. Powell, Ph.D. Department of Economics and Institute for Health Research and Policy University of Illinois at Chicago M. Christopher Auld, Ph.D. Department of Economics, University of Calgary and Institute for Health Research and Policy, University of Illinois at Chicago Frank J. Chaloupka, Ph.D. Department of Economics and Institute for Health Research and Policy University of Illinois at Chicago Patrick M. O’Malley, Ph.D Survey Research Center, Institute for Social Research The University of Michigan Lloyd D. Johnston, Ph.D. Survey Research Center, Institute for Social Research The University of Michigan We gratefully acknowledge research support from the Robert Wood Johnson Foundation through ImpacTeen and Youth, Education, and Society studies. Monitoring the Future survey data were collected under a grant from the National Institute on Drug Abuse. We thank Yanjun Bao and Donka Mirtcheva at the University of Illinois at Chicago and Deborah Kloska at the University of Michigan for their excellent research assistance. 1 ABSTRACT We examine the extent to which food prices and restaurant outlet density are associated with adolescent fruit and vegetable consumption, body mass index (BMI), and the probability of overweight. We use repeated cross-sections of individual-level data on adolescents from the Monitoring the Future Surveys from 1997-2003 combined with fast food and fruit and vegetable prices obtained from the American Chamber of Commerce Researchers Association and fast food and full-service restaurant outlet density measures obtained from Dun & Bradstreet. The results suggest that the price of a fast food meal is an important determinant of adolescents’ body weight and eating habits: a 10% increase in the price of a fast food meal leads to a 3.0% increase in the probability of frequent fruit and vegetable consumption, a 0.4% decrease in BMI, and a 5.9% decrease in probability of overweight. The price of fruits and vegetables and restaurant outlet density are less important determinants, although these variables typically have the expected sign and are often statistically associated with our outcome measures. Despite these findings, changes in all observed economic and socio-demographic characteristics together only explain roughly one-quarter of the change in mean BMI and one-fifth of the change in overweight over the 1997-2003 sampling period. 2 INTRODUCTION The prevalence of overweight among American adolescents aged 12-19 has tripled over the last three decades, reaching 16.1% by 1999-2002 (Hedley et al. 2004). Parallel to this rising obesity epidemic, data based on nationwide surveys of food consumption patterns and household expenditures show a marked upward trend in total energy intake derived from away-from-home sources (Stewart et al., 2004). In 2002, nearly half of Americans’ food expenditures went toward an away-from-home food facility compared to one-quarter in 1960. The greatest growth over the twenty year period from 1982 to 2002 by outlet type in the away-from-home food market as a percent of sales was in the fast food industry. In this study, we provide econometric evidence on whether adolescent fruit and vegetable consumption and body weight respond to changes in the prices of fruit and vegetables and fast food and the availability of full-service and fast food restaurants. Previous research suggests that one explanation for the increase in overweight is higher caloric intake associated with fast food meals. Based on food consumption surveys categorizing caloric intake from food source locations by home, restaurants, fast food establishments, schools or day care and other non-home locations, Guthrie et al. (2002) reported significant increases over the last few decades in the portion of food prepared away-from-home with particularly large increases in fast food consumption. The percentage of total caloric intake from fast food sources increased between 1977-78 and 1994-96 by a factor of three for adults aged 18 years and over and by a factor of five for children aged 2-17 years. Nielson et al. (2002) reported a significant increase in the consumption of particular foods such as salty snacks, french fries, cheeseburgers, pizza and soft drinks and showed that the portion of total energy coming from restaurant and fast food places tripled among adolescents (aged 12-18) and doubled among young adults (aged 1929) over the period from 1977 to 1996. These trends in dietary patterns mirror obesity trends for adolescents and adults. Research that has examined associations between fast food consumption and nutrient intake find that, controlling for individual and socioeconomic characteristics, for both children and adults fast food consumption is associated with higher total energy intake and density and higher intake of fat, saturated fat, carbohydrates, sugar, carbonated soft drinks and lower intake of micronutrients and fruit and vegetables (Lin et al.1999; Binkley et al. 2000; French et al. 2000, 2001a; Lin and Morrison 2002; Paeratakul et al. 2002; Bowman et al. 2004; Bowman and Vinyard 2004) . In addition to the literature tracking dietary consumption over time, a large body of research has examined the determinants of food consumption patterns. Individual, household, and regional characteristics are associated with dietary intake patterns (Lutz and Blaylock 1993; Siega-Riz et al. 2000; Neumark-Sztainer et al. 2003; Xie et al. 2003) and the demand for food away from home (Stewart et al. 2004). Lack of data on food prices is often a limitation of this research. Stewart et al. noted that “prices are an important determinant of demand” (p.829) but due to a lack of data the authors were unable to include them in the study. In the absence of price data, several studies have examined the impact of household expenditures on food consumption patterns, but these expenditure data are likely to suffer from endogeneity problems as prices and other unobserved determinants of food expenditures are likely to be correlated with consumption patterns. Park and Capps (1997) found the demand for prepared meals to be price sensitive based on an imputed food price from expenditure data. Other research examines the determinants of total expenditure on food consumption patterns, but such studies do not allow the researcher to disentangle price and quantity (McCracken and Brandt 1987). 3 Studies that do include food prices show that prices and access are important determinants of food consumption. Recent research shows that own-price reductions in vending machines significantly increase children’s food purchases of low-fat snacks (French et al. 2001b; French et al. 1997a). Fruit and vegetable consumption in cafeterias is responsive to price (Jeffery et al. 1994; French et al.1997b; Hannan et al. 2002). Specific food demand models show that prices are important determinants of consumption of fats and oils (Yen et al. 2002). Economic research emphasizes changes in incentives, particularly prices, as causes of changes in body weight. Lakdawalla and Philipson (2002) argued on the basis of both theory and evidence from microdata that the obesity epidemic in the U.S. is a result of two changes in incentives: the relative price of consuming a calorie has fallen over time while the opportunity cost of burning a calorie has risen over time. Other econometric studies focusing on incentives as determinants of body weight show that increases in the per capita number of restaurants, lower real food prices, and higher cigarette prices may have significantly contributed to the upward trend in obesity (Chou et al. 2004) 1 . Only one study to date has examined the effects of restaurant outlet density and food prices on the body mass index (BMI) of children: Sturm and Datar (2005) analyzed weight changes in children in kindergarten through the third grade and found that lower fruit and vegetable prices, but not generally prices of other food items or outlet density, predicted smaller increases in body weight. Lakdawalla et al. (2005) reported that lower food prices are associated with better nutritional status even in a highly developed country such as the U.S. Overall, econometric analysis of individual-level data on adults and young children indicates decreases in food prices are an important cause of the obesity epidemic. This study examines the extent to which food prices and restaurant outlet density are associated with adolescent body weight and fruit and vegetable consumption. We use repeated crosssections of individual-level data on adolescents from 1997 through 2003. We observe adolescents’ weight outcomes and fruit and vegetable consumption along with detailed sociodemographic data from the Monitoring the Future (MTF) surveys. Geographic identifiers at the zip code level are exploited to merge these data with fast food and full-service restaurant outlet density measures obtained from Dun & Bradstreet (D&B) and the price of fast food and fruits and vegetables obtained from the American Chamber of Commerce Researchers Association (ACCRA). Following economic explanations for changes in body weight and assuming food types substitute for one another, we expect consumption of fruits and vegetables to decrease with their own price and increase with the full price of fast food. Similarly, we expect consumption of fast food to be higher when its full price (including travel costs) is lower or when fruits and vegetables are more expensive. We do not observe fast food consumption but estimate reduced form models of BMI and overweight. We expect that weight will be higher in times and places where the full price of fast food is lower or where the price of fruits and vegetables is higher. This is the first study to estimate the importance of such contextual factors on eating habits and weight outcomes among adolescents. The results suggest that the price of a fast food meal is an important determinant of adolescents’ body weight and eating habits. The price of fruits and vegetables and restaurant outlet density are less important determinants, although these variables typically have the expected sign and are often statistically associated with our outcome measures. Despite the evidence we present that 1 Also see comment by Gruber and Frakes (2005) and reposnse by Chou et al. (2006). 4 changes in incentives are economically and statistically significant determinants of BMI, we find that in total changes in these incentives and changes in all other observed socio-demographic characteristics can only explain about one-quarter of the increase in mean BMI observed between 1997 and 2003. Further, only a small portion of the explainable variation is due to changes in food prices and restaurant densities. Similarly, most of the change in overweight is not explained by changes in observed characteristics. METHODS DATA This study combines individual-level national data for 8th and 10th grade students from the MTF surveys with data on restaurant outlets obtained from business lists developed by D&B and food price data obtained from the ACCRA. The external outlet density and food price measures are matched to the individual-level data at the school zip code level for each year 1997 through 2003. Monitoring the Future Survey Data The MTF study, which has annually surveyed nationally representative samples of high school seniors in the coterminous United States since 1975, is conducted by the University of Michigan’s Institute for Social Research (ISR). Since 1991 the MTF surveys have also included 30,000 eighth and tenth grade students annually. Located in approximately 280 schools, these 8th and 10th grade students are selected annually for the MTF survey based on a three-stage sampling procedure (Johnston et al. 2004). Stage 1 involves geographic area selection. Stage 2 involves selection of one or more schools in each area based on establishing the probability for inclusion proportionate to the size of the respective grade to be sampled. Stage 3 selects students within each selected grade. Within each school, up to 350 students per grade are selected for the study. For those schools with a smaller student body for the respective grade, all students are selected. If a school has more than 350 students then a random sample of classrooms or other random method is used to choose the final sample. This study draws on the 8th and 10th grade student samples. The data are weighted to correct for any inequalities in selection probabilities at the various stages of sampling. The summary statistics and regression analyses are weighted. Questionnaires are administered by an ISR representative in classrooms during normal class periods whenever possible. Students are informed of the importance of accurate responses and assured that their confidentiality will be protected. Neither parents nor the school are informed of individual student responses. In order to cover the range of topic areas in the study, 8th and 10th grade students are administered four different forms. This occurs in an ordered sequence, so as to ensure virtually identical sub-samples for each form. Approximately one-third of the questions on each form are common to all forms; these include the demographic variables used in this study. Questions that relate to food consumption, physical activity and height and weight are all form specific and are included on only a subset of forms. MTF Student Samples: For the seven years of data from 1997 through 2003 for 8th and 10th students our sample has a total of 72,854 observations on which we have information on height and weight and non-missing information on our covariates. Our sample with information on food consumption behavior totals 47,675 observations. As noted above, the reason for the differing sample sizes is that MTF consists of multiple forms that include both core and form- 5 specific questions. The questions on food consumption behaviors and height and weight are form-specific. Fruit and Vegetable Consumption Measure: We create a measure of frequent fruit and vegetable consumption based on the answers to the following two questions: ``How often do you eat at least some green vegetables?’’ and ``How often do you eat at least some fruit?’’ Student responses include the following possible categories for each question: never, seldom, sometimes, most days, nearly every day, and every day. Based on these answers we created a dichotomous indicator for frequent consumption of fruit and vegetables equal to unity if the student answered most days, nearly every day or every day for both questions and equal to zero otherwise. Table 1 shows that the majority (57%) of students frequently consume both fruits and vegetables. Table 2 shows that frequent fruit and vegetable consumption trended downward until 2002 but bounced up in 2003. BMI and Overweight Measures: Anthropometric information is available in the MTF survey based on self-reports. Such data are likely to contain measurement error. Wang et al. (2002) found under-reporting of both overweight and obesity in self-reported data of older adolescents (15-19 years). Concerns stemming from measurement error are mitigated by Strauss (1999) who found that 94% of children were in the correct classification of obesity and Goodman et al. (2000) who found that examining self-report data among teens correctly classified 96% as obese or not obese. Using height and weight, we calculate BMI (=weight(kg)/height(m)2). Individuals’ body weight status is classified based on BMI for children and teens using the 2000 CDC Growth Chart (Kuczmarski et al. 2001); obesity is classified as BMI>=age-sex-specific 95th percentile (based on data from 1963-1994). Note that for children the CDC recommends using the term of “overweight.” We create a dichotomous indicator equal to one if the student is “overweight” and zero otherwise. Table 1 shows that average BMI is 21.8 and prevalence of overweight is 10.3% for the full sample of students. Table 2 shows that over the 1997-2003 period BMI trended upwards reaching 22 in 2003. Over the same period, the prevalence of overweight peaked at 11.5% in 2001 and fell somewhat to 11% by 2003. Socio-demographic Measures: We control for demographic measures available in the student surveys including: gender; grade; age; race/ethnicity; highest schooling completed by father; highest level of schooling completed by mother; a rural/urban area neighborhood designation; total student real ($82-84) income (earned and unearned such as allowance; specified in $100s in the regressions); weekly hours of work by the student and whether the mother works part-time or full-time. In our sensitivity analyses for our overweight models, we also control for participation in physical activity based on the following question: ``How often do you do actively participate in sports, athletics or exercising?’’ Responses were based on a 5-point scale that included: never, a few times a year, once or twice a month, at least once a week, and almost every day. Based on these answers we created a dichotomous indicator for frequent participation in physical activity equal to unity if the student answered at least weekly or almost every day and equal to zero otherwise. The summary statistics in Table 1 show that just under half of the sample is male and that approximately 69% of the students are white, 11% are black, 10% are Hispanic and 10% are of other (or mixed) racial/ethnic backgrounds. The average age of the sample is 14.7 and just under half of the sample is in 8th grade, whereas the second half is in 10th grade. The majority of students’ parents have at least some college education (58% of fathers and 61% 6 of mothers). Most (80%) students live with both of their parents and just under one quarter live in a rural area. Students work on average just under 4 hours per week. Students’ average weekly real income is about $23. Approximately 64% of students’ mothers work full-time whereas 18% of students have mothers who work part-time. The sample is evenly distributed across years with about 14% in each of the seven years from 1997-2003. Restaurant Outlet Density Measures Data on restaurant outlets were obtained from a business list developed by D&B. 2 This list is obtained through use of D&B MarketPlace software. MarketPlace contains information on more than 14 million businesses in the U.S. and D&B employs a staff of more than 1,300 individuals to compile and update these records through interviews, public documents, and directories. The records are then updated quarterly in order to optimize their accuracy and completeness. Specifically, D&B utilizes the following sources to help update its database: yellow page directories that are matched against its database to identify new businesses; news and media sources are monitored daily to identify businesses that have merged, been acquired, closed, or claimed bankruptcy; government registries to identify business registration information; and, websites, including its own where businesses have the ability to review and update their own information. In addition to these sources, D&B has telecenters that place approximately 100 million phone calls annually to update and verify business list information. D&B has a number of quality assurance protocols in place to ensure accuracy of the data. For instance, D&B utilizes a “match grade” method to consolidate multiple business listings into one complete record. This method ensures that there are no duplicate entries of the same business and that data are not matched to the wrong business. D&B also assigns each business a unique numerical identifier to ensure validity of its data over time. This nine-digit number is never recycled and allows D&B to easily track changes and updates for all businesses contained in its database. MarketPlace allows sorting by multiple criteria such as zip code, company, size, location, metropolitan area, county, state, physical addresses, subsidiaries, and Standard Industry Classification (SIC) codes. SIC codes allow for searching for, and selection of, specific types of businesses at varying levels of detail/specificity. Facilities may appear on the Marketplace list by both "primary" and "secondary" SIC codes. Therefore, there is initially some level of duplication in the listings. To eliminate such duplications, we draw on the primary SIC code listing in creating the list of outlets used for this analysis. Information on restaurant outlets available in the D&B data set was pulled by zip code for the years 1997 through 2003. The outlet density data are linked to the individual-level data by student’s school’s zip code. While this may be a good proxy for the student’s home zip code at lower grade levels (in this case grade 8), high schools may draw their student population from beyond its own zip code. If a child lives in a different zip code to that of their school, the extent to which neighboring zip codes are similar will help to mitigate this potential source of error for 2 Information on D&B’s methods was obtained from several sources that include: 1) www.zapdata.com; 2) "The DUNSright Quality Process: The Power behind Quality Information" (2005) Dun and Bradstreet; and, 3) Personal communication with Todd Mertz, Relationship Leader, US DUNSright Customer Solutions, D&B, February 2, 2004. 7 differing access between time spent near and around school and time spent around their home. Information on the total number of restaurants was pulled at the 4-digit SIC code level and the number of fast food restaurant outlets was pulled at the 6-digit SIC code level. Non-fast food restaurants, referred to as full service restaurants, are defined as the number of total restaurants minus the number of fast food restaurants. Table 1 shows that on average in each zip code there are 2.4 fast food and 12.8 full service restaurants per 10,000 people. Table 2 reveals that the per capita number of full service restaurants remained fairly constant over the 1997-2003 period while the per capita number of fast food restaurants trended upwards, increasing by 56%. Food Price Measures Food and fast food price data were obtained from the American Chamber of Commerce Researchers Association (ACCRA) Cost of Living Index reports. These reports contain quarterly information on prices across more than 300 US cities. The ACCRA collects 62 different prices for a range of products. Price data collection is based on establishment samples that reflect a midmanagement standard of living. For consistency, national brands are stipulated where possible. Otherwise, “lowest price” is specified and is the average of the lowest prices found in all stores surveyed. These price data are matched to the MTF sample based on the closest city match available in the ACCRA data using school zip code geocode data. Price data are drawn from quarters one and two as these reflect the time frame of the MTF surveys. From the items provided in the ACCRA data we create two prices indices: a fruit and vegetable price index and fast food price index. All prices are deflated by the BLS Consumer Price Index (CPI) (19821984=1). The ACCRA also reports a cost of living index for each city which could be used to further deflate prices. Following Chou et al. (2004) we do not use this index because, given the ACCRA sample structure based on cost differentials among mid-management households, homeownership costs are likely to be over-weighted compared to an index based on an average consumer. The fruit and vegetable price index is based on the food prices available for this food category: potatoes, bananas, lettuce, sweet peas, tomatoes, peaches, and frozen corn. ACCRA reports weights for each item based on expenditure shares derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey. These weights are used to compute a weighted fruit and vegetable price based on the seven food items noted above. Table 1 shows that the average real price of the fruit and vegetable bundle in our sample is 72 cents. Table 2 reveals that the real fruit and vegetable price increased by 17% over the sampling period. The fast food price is based on the following three items included in the ACCRA data: a McDonald’s Quarter-Pounder with cheese, a thin crust regular cheese pizza at Pizza Hut and/or Pizza Inn, and fried chicken (thigh and drumstick) at Kentucky Friend Chicken and/or Church’s Friend Chicken. The fast food index is computed as an average of these three food prices since they have equal weights. Table 1 shows that the average real fast food price is $2.71. Table 2 shows that the real fast food price trended downwards over the 1997-2003 period, falling by roughly 5%. ANALYTIC FRAMEWORK We follow Lakdawalla and Philipson (2002) in viewing body weight within a rational choice framework in which individuals choose food intake and physical activity in order to achieve ends 8 such as health, social acceptance, and gastronomic pleasure. Observed weight is determined by the costs and benefits of gaining or losing weight at the margin, and these costs and benefits depend in part on the prices individuals face to obtain a given bundle of food products, to prepare food, to use energy through exercise, and the prices of goods and services other than food. Demand for various types of food and for physical activity obtains as a function of these parameters, and weight in turn is determined by these demands. We estimate reduced form statistical models for measures of body weight and demand equations for consumption of fruit and vegetables. Generally, weight depends on the composition of the amount and kind of food consumed, on genetics, on physical activity, and possibly other environmental and behavioral factors. We focus on the total price of several forms of food intake as determinants of observed weight. Since detailed decompositions of food intake are not available in our data, we simplify by considering the availability of full service and fast food restaurants, the price of fruits and vegetables, and the price of fast food meals as key determinants of weight. Fast food meals are energy dense and the rise in obesity over time is speculated to be partially explained by decreases in price for these meals and increases in demand for food away from home caused in part by increases in female labor force participation (Lakdawalla and Philipson 2002, Chou et al. 2004). Anderson et al. (2003) provide evidence on the causal effect of greater maternal hours of work and increased overweight status for children. The total price of food intake includes both the prices of various types of food and the opportunity cost of the time spent acquiring the food. The time cost depends in turn on how far one must travel to obtain a given type of food. We proxy these time costs using measures of percapita fast food and full service restaurant densities. The extent to which fast food alternatives are conveniently available within local communities compared to full-service restaurants that may offer more healthful food alternatives is likely to shape eating patterns. Differences in the supply of alternative choice sets for dining out, or having food delivered, or obtaining take-out food across different communities may result in systematic differences in eating patterns and weight status. Our statistical models disentangle the effects of changes in incentives, as measured by money prices and outlet densities, from other determinants of body weight and eating habits using either ordinary least squares regression or maximum likelihood probit regression. In some models, we include variables that may be simultaneously determined with the outcome (such as measures of physical activity), and our price and outlet measures may be correlated with unobserved regional characteristics which also affect weight such as peer or selection effects. We do not attempt to correct for such potential endogeneity problems but rather report sensitivity checks and bestow causal interpretations to our estimates cautiously. Model of fruit and vegetable consumption: We report marginal effects from maximum likelihood probit models when our outcome is binary, such as the indicator for frequent fruit and vegetable consumption. Assume respondent i’s propensity to frequently consume fruit and vegetables, FVCi*, is given by FVCi * = β 0 + β 1ODis + β 2 PFFis + β 3 PFVis + β 4 Xi + εi (1) 9 where ODis is a vector of full-service food and fast food restaurant outlet density available to individual i in geographic area s, PFFis is the price of fast food, PFVis is the price of fruits and vegetables, Xi is a vector of individual and household characteristics, β are parameters to be estimated and εi is a normally distributed disturbance term. Individual i is observed to frequently consume fruits and vegetables if FVCi*>0. The marginal effect associated with the coefficient estimate β3 gives the own-price effect on fruit and vegetable consumption, whereas the effect associated with the estimate of β2 measure the cross-price effect between fruit and vegetable consumption and the price of fast food. We report alternative specifications, varying the control variables in X. Reduced form models of BMI and overweight status: We estimate reduced form models of individual BMI and OVERWEIGHT specified by: BMI / OVERWEIGHT i = β 0 + β 1ODis + β 2 PFFi + β 3 PFVis + β 4 Xi + εi (2) where the variables are defined as in equation (1) above. The BMI model is estimated by OLS and the OVERWEIGHT model is estimated as a probit model similar to the frequent fruit and vegetable consumption model. Interpretation of year effect dummies: In our preferred specifications, we include a set of dummy variables indicating survey waves 1998 through 2003. Inclusion of these dummies is equivalent to nonparametrically detrending each variable in the analysis such that the estimates do not reflect common trends. For example, in our data mean BMI trends up and mean fast food prices trend down, but this common trend is removed by the time dummies and we identify the effects of interest using regional variation within years. We also report some specifications without time dummies in order to contrast the magnitude of the estimates on our key variables. In models with year dummies, we vary the included additional covariates to assess the ability of these covariates to explain trends in BMI and overweight. Consider the equation, Yi = γ 0 + γ 1Di + γ 2 Zi + εi (3) where Yi is an outcome of interest, Di is a set of year dummies indicating the years from 1998 to 2003, and Z are covariates. If we estimate this model including only the time dummies using ordinary least squares regression (that is, set γ 2 =0), the estimate of the constant γ0 is the mean of Yi in 1997 and each estimated parameter on the year dummies recovers changes in the mean of Yi relative to 1997. If we then include the covariates Z, the estimates of the year effects γ1 measure changes in the mean of Yi over time that cannot be attributed to changes in Z. RESULTS The results from the regression models of the relationship between access to fast food and food prices and adolescent frequent fruit and vegetable consumption, BMI and overweight status are presented in Table 3. Table 3 includes results from models with the full set of control covariates 10 with and without the year dummies. Examining first the results for fruit and vegetable consumption, we find that increased availability of full service restaurants has a statistically significant relationship with the likelihood of adolescent frequent fruit and vegetable consumption: ten more full service restaurants per capita in the respondent’s region is associated with a 1.9 percentage point increase in the probability of frequent consumption. A dollar increase in the price of fast food is statistically significantly associated with a reduction in frequent consumption of fruit and vegetables; by 7.3 percentage points when year effects are not included and by 6.7 percentage points when they are. A $1 increase in the price of fruit and vegetables is estimated to decrease fruit and vegetable consumption by 6.3 percentage points (z=2.05). The estimated effect does not change when time dummies are included but loses some statistical significance (z=1.79). Turning to the BMI and overweight models, the results show that the inclusion of the year dummies substantially reduces the magnitude and statistical significance of the estimated access and price effects. Model 3, with no year effects, suggests that fast food and fruit and vegetable prices both statistically significantly impact BMI. When year effects are included, in Model 4, the magnitude of the fruit and vegetable price effect drops by more than half and loses statistical significance. The estimated effect of a one dollar change in the price of a fast food meal falls by almost half to 0.31 m/kg2, but remains statistically significant. Model 4 also suggests that BMI is higher when there are fewer full service restaurants, more fast food restaurants, or higher fruit and vegetable prices, although none of these latter results are statistically significant. In the overweight model, the only statistically significant contextual factor is the price of fast food. Controlling for year effects, Model 6 suggests that a dollar increase in the price of a fast food meal reduces the prevalence of overweight by 2.2 percentage points. The signs on the effects of the other price and access measures are also as expected but, as with BMI, these effects are not statistically significant. Sensitivity analyses to check the robustness of the results of our outlet density and price variables to alternative specifications are shown in Table 4. 3 Results are shown that examine the sensitivity to specifications that exclude mother’s work status for both outcomes and that include student frequent participation in physical activity in the specification of the BMI model. Maternal work status is highly statistically significant but its inclusion has little effect on the estimated price and restaurant access coefficients. Similarly, Model 5 shows that conditioning on physical activity has little effect on the price and restaurant access coefficients. Since physical activity may proxy unobserved region-varying determinants of weight outcomes, robustness to the inclusion of this variable mitigates concern over omitted variable bias. For example, social attitudes towards health may vary across regions and may be correlated with food prices and restaurant density. Since these attitudes may also be correlated with physical activity, if such unobserved factors were biasing our results we would not expect the results to be robust to the inclusion of the activity measure. 3 We also undertake sensitivity analyses (not shown in this table) to assess the robustness of our results to our sample restriction on missing data. Due to a high number (13%) of missing observations on parental education, we reran our analyses including dummy indicators for missing on these variables and found that the results for all of our key contextual variables are robust to their sample exclusion. One difference does occur for the control variables; with missing information on parental education, the mother’s full-time work covariate is no longer statistically significant in the BMI and overweight regressions. 11 Turning to the covariates other than prices and restaurant densities, the results from the frequent fruit and vegetable consumption model (Table 3, Model 2) show that older students within grade, those who are African American or Hispanic, and those students whose mother or father have less than a high school education are significantly less likely to frequently consume fruit and vegetables. The strongest associations are found for race: compared to their white counterparts, African American and Hispanic students are 14.5 and 9.8 percentage points less likely to frequently consume fruit and vegetables. Student’s income has a very small marginally statistically significant impact on consumption. Students who live in an intact family and those with college-educated parents are significantly more likely to frequently consume fruit and vegetables. However, controlling for mothers’ education (and the other covariates), students with a mother who works full-time are four percentage points less likely to frequently consume fruit and vegetables compared to students whose mothers do not work. The year dummy variables are not statistically significant individually, nor are they jointly statistically significant. The results for the control covariates in the BMI (Model 4) and overweight (Model 6) models are as expected. African American and Hispanic students are more likely to be overweight by 5.4 and 3.6 percentage points, respectively, than white students, and white students have lower mean BMI. Male and 10th versus 8th grade students are have higher BMI and are more likely to be overweight. Controlling for grade, BMI increases with age but the risk of overweight does not. Students with parents who have higher education and those who live with both parents have lower BMI and are less likely to be overweight. Living in a rural area is associated with higher BMI and overweight prevalence. Controlling for maternal education, mothers’ full-time work is significantly associated with 0.13 m/kg2 higher in BMI and marginally associated with just over half a percentage point increase in the probability of overweight. Table 5 shows the estimated year effects from several specifications. Model 1 includes no other covariates and so recovers deviations in unadjusted means from 1997. As already shown in Table 2, mean BMI generally trends up over our sampling interval. Model 2 adds fast food and fruit and vegetable prices and the restaurant density measures as additional covariates. If changes in these variables over time explain a substantial portion of changes in obesity over time, then the estimated year effects should fall substantially towards zero, which we do not observe. In Model 3, we include all covariates (these replicate Models 2, 4 and 6 in Table 3). Figure 1 shows that the significant drop in fruit and vegetable consumption that occurred by 2002 is substantially explained by our observed covariates with the contextual price and outlet density factors accounting for a large part of this trend. Figure 2 shows that changes in all covariates, including prices and densities and mother’s employment, explain only roughly onequarter of the ½ point change in mean BMI. Similarly, Figure 3 displays the results for overweight status over time. Overweight status trends up until 2001, then levels off or starts to fall. Contextual factors and other covariates explain little of this variation: if prices, restaurant densities, and all other characteristics were unchanged across the sampling period, the pattern of changes in overweight would not have been markedly different. 12 CONCLUSIONS We contribute to the literature examining the causes for the obesity epidemic in the United States by examining the determinants of BMI, overweight and fruit and vegetable consumption among adolescents. We analyze repeated cross-sections from the Monitoring the Future surveys, merged with data on fruit and vegetable and fast food prices and fast food and full service restaurant outlet density measures matched at the zip code level. The results indicate that changes in prices and restaurant densities change outcomes in the manner predicted by the standard economic model. Fruit and vegetable consumption is lower when fruit and vegetable prices are higher, or when the price of fast food is lower, or when full service restaurants are less readily available. BMI is lower when fast food is more expensive. The price of fast food is the only contextual factor consistently associated with both fruit and vegetable consumption and with the weight outcomes and it is the only factor that is statistically significantly associated with BMI and overweight. Our preferred specifications suggest that a 10% increase in the price of a fast food meal leads to a 3.0% increase in the probability of frequent fruit and vegetable consumption, a 0.4% decrease in BMI, and a 5.9% decrease in prevalence of overweight. These results suggest that individuals at risk of overweight are more responsive to changes in price than the average individual. We also find that changes in prices and access explain very little of the one-half point increase in mean BMI between 1997 and 2003. Over this period mean BMI increases and simultaneously fast food prices fall, fruit vegetable prices rise, and fast food outlet density rises. Together these changes suggest that substitution towards fast food driven primarily by fast food price changes may explain increases in weight outcomes. This explanation is correct but only accounts for perhaps 5% of the observed change in BMI and 7% of the observed change in overweight. Changes in all observed economic and socio-demographic characteristics together only explain roughly one-quarter of the change in mean BMI and one-fifth of the change in overweight. The bulk of the change in weight outcomes remains in the residual, not attributable to changes in prices, restaurant density, mother’s employment, race, age, student’s income or employment, parental education, or family structure. These results are subject to several limitations. Some of the key variables are subject to measurement error which will tend to reduce the magnitude of our estimated effects and understate the importance of, in particular, our economic explanatory variables. Information on family income is unavailable in our data; previous research has shown that income is highly correlated with body weight. To the extent that our control variables, such as parental education, do not capture variation in income our results may be subject to omitted variables bias. Also, we identify the effects of prices and densities using variation across geographic regions within years such that unobserved determinants of weight outcomes and eating habits across regions may bias our results. Despite these limitations, our results for adolescents are consistent with findings for other age ranges and suggest that food prices are statistically significant predictors of weight outcomes and eating habits. 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Nayga Jr. (2004) The Demand for Food Away From Home: Full-Service or Fast Food? Food and Rural Economics Division, Economic Research Service, USDA. Agricultural Economic Report No. 829. Strauss, RS (1999) Comparison of measured and self-reported weight and height in a crosssectional sample of young adolescents. International Journal of Obesity, 23, 904-908. Sturm, Roland and Ashlesha Datar (2005) Body Mass Index in Elementary School Children, Metropolitan Area Food Prices, and Food Outlet Density. Public Health, 119 (12): 1059-1068. Wang Z, Patterson CM, Hills AP. (2002). A comparison of self-reported and measured height, weight and BMI in Australian adolescents. Aust N Z J Public Health; 26(5):473-478. Xie, Bin; Frnak D. Gilliland; Yu-Fen Li and Helaine RH Rockett. (2003) Effects of Ethnicity, Family Income, and Education on Dietary Intake among Adolescents. Preventive Medicine 36: 30-40. Yen, Steven T.; Kamhon Kan and Shew-Jiuan Su (2002) Household Demand For Fats and Oils: Two-Step Estimation of a Censored Demand System. Applied Economics 14: 1799-1806. 16 Change in fruit&veg consumption from 1997 .01 0 -.01 -.02 No controls Controlling for: Prices and densities All covariates -.03 1997 1998 1999 2000 2001 2002 2003 year Figure 1: Changes in frequent fruit and vegetable consumption over time Figure 1 shows changes in prevalence of frequent fruit and vegetable consumption, relative to 1997. The solid line shows unadjusted changes in the sample means. The dashed line shows changes that can be attributed to neither changes in fast food and fruit and vegetable prices nor changes in restaurant outlet densities. The dotted line shows changes that cannot be attributed to prices, densities, or any of the other covariates listed in Table 1. 17 Change in mean BMI from 1997 .5 .4 .3 .2 No controls Controlling for: Prices and densities All covariates .1 0 1997 1998 1999 2000 2001 2002 2003 year Figure 2: Changes in mean BMI over time Figure 2 shows changes in mean BMI, relative to 1997. The solid line shows unadjusted changes in the sample means. The dashed line shows changes that can be attributed to neither changes in fast food and fruit and vegetable prices nor changes in restaurant outlet densities. The dotted line shows changes that cannot be attributed to prices, densities, or any of the other covariates listed in Table 1. 18 Change in overweight from 1997 .03 .02 .01 No controls Controlling for: Prices and densities All covariates 0 1997 1998 1999 2000 2001 2002 2003 year Figure 3: Changes in overweight over time Figure 3 shows changes in prevalence of overweight, relative to 1997. The solid line shows unadjusted changes in the sample means. The dashed line shows changes that can be attributed to neither changes in fast food and fruit and vegetable prices nor changes in restaurant outlet densities. The dotted line shows changes that cannot be attributed to prices, densities, or any of the other covariates listed in Table 1. 19 Table 1: Summary Statistics: Outcomes, Access, Price, and Control Variables Body Mass Index (BMI) Prevalence of Overweight Frequent Consumption of Fruit and Vegetables Per Capita Number of Full Service Restaurants Per Capita Number of Fast Food Restaurants Price of Fast Food ($82-84) Price of Fruit and Vegetables ($82-84) Weekly or More Frequent Physical Activity Participation Male BMI/Overweight Sample 21.8061 (4.2932) 0.1025 12.8358 (9.3673) 2.4492 (2.2019) 2.7130 (0.1743) 0.7206 (0.1047) Fruit and Vegetable Consumption Sample 0.7484 - 0.4754 14.6570 Age (1.1637) 8th Grade 0.4852 th 10 Grade 0.5148 White 0.6957 Black 0.1065 Hispanic 0.0971 Other Race 0.1007 Father Less Than High School 0.1308 Father Complete High School 0.2933 Father College or More 0.5759 Mother Less Than High School 0.1110 Mother Complete High School 0.2798 Mother College or More 0.6092 Live With Both Parents 0.7997 Live In Rural Area 0.2382 22.8239 Students’ Weekly Income ($82-84) (26.6573) 3.8568 Hours Worked by Student (7.1437) Mother Works Part-Time 0.1827 Mother Works Full-Time 0.6415 Year 1997 0.1471 Year 1998 0.1473 Year 1999 0.1398 Year 2000 0.1380 Year 2001 0.1392 Year 2002 0.1381 Year 2003 0.1505 N 72,854 Notes: Standard deviations are shown in parentheses for non-dummy variables. 0.5687 12.8491 (9.3779) 2.4512 (2.2089) 2.7137 (0.1744) 0.7204 (0.1046 ) 0.4722 14.6606 (1.1649) 0.4828 0.5172 0.6972 0.1048 0.0970 0.1010 0.1328 0.2916 0.5756 0.1114 0.2760 0.6126 0.8004 0.2378 23.1516 (26.2636) 4.0074 (7.1902) 0.1839 0.6408 0.1474 0.1498 0.1397 0.1365 0.1392 0.1370 0.1504 47,675 20 Table 2: Trends in Outcomes, Access and Prices Year 1997 1998 1999 0.0876 Per Capita Number of Full Service Restaurants 12.6969 Per Capita Number of Fast Food Restaurants 2.0169 2.7901 0.6680 (0.2827) [N=10720] (9.3399) [N=10720] (1.6154) [N=10720] (0.2167) [N=10720] (0.0696) [N=10720] 21.6446 0.0913 12.3911 2.2918 2.7788 0.7021 (0.4929) [N=7018] (4.1767) [N=10543] (0.2881) [N=10543] (7.5903) [N=10543] (1.9633) [N=10543] (0.1685) [N=10543] (0.0680) [N=10543] 0.5683 21.7325 0.0984 12.3945 2.1182 2.7699 0.7053 (0.4953) [N=6709] (4.2945) [N=10237] (0.2978) [N=10237] (9.1817) [N=10237] (1.9544) [N=10237] (0.1522) [N=10237] (0.1287) [N=10237] Frequent Fruit and Vegetable Consumption 0.5795 21.5454 (0.4937) [N=7057] (4.0497) [N=10720] 0.5841 BMI Overweight Status Price of Fast Food Price of Fruit and Vegetables 2000 0.5696 21.8110 0.1063 11.7724 2.0792 2.6936 0.6939 (0.4952) [N=6445] (4.2290) [N=9979] (0.3082) [N=9979] (7.3920) [N=9979] (1.6964) [N=9979] (0.1404) [N=9979] (0.0649) [N=9979] 2001 0.5576 21.9347 0.1151 13.6342 2.6355 2.6481 0.6770 (0.4967) [N=6665] (4.4579) [N=10198] (0.3192) [N=10198] (11.6241) [N=10198] (2.5242) [N=10198] (0.1514) [N=10198] (0.0796) [N=10198] 2002 0.5471 21.9865 0.1099 14.2231 2.9521 2.6592 0.8141 (0.4978) [N=6525] (4.4200) [N=10074] (0.3128) [N=10074] (11.0536) [N=10074] (2.7759) [N=10074] (0.1478) [N=10074] (0.1086) [N=10074] 2003 0.5719 21.9979 0.1102 12.7800 3.1363 2.6477 0.7835 (0.4948) [N=7256] (4.3998) [N=11103] (0.3131) [N=11103] (0.8493) [N=11103] (2.3519) [N=11103] (0.1524) [N=11103] (0.0998) [N=11103] 0.5687 21.8061 0.1025 12.8358 2.4492 2.7130 0.7206 (0.4953) [N=47675] (4.2932) [N=72854] (0.3034) [N=72854] (9.3673) [N=72854] (2.2019) [N=72854] (0.1743) [N=72854] (0.1047) [N=72854] All Years Notes: Standard deviations are shown in parentheses and numbers of observations are shown in brackets. 21 Table 3: Effects of Access to Fast Food and Food Prices on Adolescent Frequent Fruit and Vegetable Consumption, BMI and Overweight Status Per Capita Number of Full Service Restaurants Per Capita Number of Fast Food Restaurants Price of Fast Food Price of Fruit and Vegetables Male Age 10th Grade Black Hispanic Other Race Father Less Than High School Father College or More Mother Less Than High School Mother College or More Live With Both Parents Live In Rural Area Students’ Weekly Income Hours Worked by Student Mother Works Part-Time Mother Works Full-Time Year 1998 Year 1999 Year 2000 Year 2001 Year 2002 Frequent Fruit and Vegetable Consumption Model 1 Model 2 0.0019*** 0.0019*** (0.0005) (0.0005) -0.0028 -0.0029 (0.0018) (0.0019) 0.0730*** 0.0669*** (0.0197) (0.0201) -0.0633** -0.0632* (0.0308) (0.0353) -0.0037 -0.0038 (0.0058) (0.0058) -0.0183*** -0.0183*** (0.0049) (0.0049) -0.0046 -0.0043 (0.0118) (0.0118) -0.1445*** -0.1450*** (0.0105) (0.0104) -0.0984*** -0.0978*** (0.0099) (0.0099) -0.0079 -0.0077 (0.0097) (0.0097) -0.0438*** -0.0436*** (0.0100) (0.0100) 0.0777*** 0.0778*** (0.0066) (0.0066) -0.0419*** -0.0421*** (0.0106) (0.0106) 0.0796*** 0.0796*** (0.0064) (0.0064) 0.0670*** 0.0669*** (0.0076) (0.0076) 0.0118 0.0118 (0.0073) (0.0072) -0.0002 -0.0002 (0.0001) (0.0001) -0.0004 -0.0004 (0.0005) (0.0005) -0.0132 -0.0130 (0.0090) (0.0090) -0.0411*** -0.0410*** (0.0073) (0.0073) 0.0135 (0.0110) -0.0018 (0.0113) 0.0058 (0.0116) -0.0115 (0.0115) -0.0084 (0.0128) Year 2003 - 0.0107 (0.0123) Constant - - 47,675 47,675 N BMI Model 3 -0.0048 (0.0029) 0.0187 (0.0122) -0.5757*** (0.1321) 0.6874*** (0.2027) 0.8053*** (0.0410) 0.2693*** (0.0342) 0.7503*** (0.0810) 1.1206*** (0.0646) 0.7244*** (0.0888) -0.0482 (0.0667) 0.4569*** (0.0706) -0.4586*** (0.0483) 0.1248 (0.0817) -0.2013*** (0.0429) -0.2609*** (0.0499) 0.2962*** (0.0530) 0.0006 (0.0010) 0.0084** (0.0037) -0.1063* (0.0636) 0.1305*** (0.0509) - 18.3290*** (0.6246) 72,854 Overweight Model 4 -0.0039 (0.0029) 0.0084 (0.0124) -0.3066** (0.1397) 0.2688 (0.2392) 0.8041*** (0.0409) 0.2719*** (0.0341) 0.7324*** (0.0804) 1.1301*** (0.0639) 0.7015*** (0.0864) -0.0615 (0.0669) 0.4551*** (0.0705) -0.4558*** (0.0483) 0.1250 (0.0816) -0.2095*** (0.0430) -0.260*** (0.0499) 0.2917*** (0.0526) 0.0007 (0.0010) 0.0088** (0.0037) -0.1038 (0.0635) 0.1335*** (0.0508) 0.0373 (0.0731) 0.1226 (0.0767) 0.1569* (0.0802) 0.2936*** (0.0795) 0.2864*** (0.0866) 0.3376*** (0.0836) 17.7112*** (0.6323) 72,854 Model 5 -0.0002 (0.0002) 0.0005 (0.0009) -0.0398*** (0.0088) 0.0159 (0.0138) 0.0698*** (0.0029) -0.0026 (0.0022) 0.0110** (0.0051) 0.0529*** (0.0054) 0.0378*** (0.0061) 0.0083* (0.0047) 0.0157*** (0.0044) -0.0261*** (0.0032) 0.0071 (0.0052) -0.0153*** (0.0032) -0.0119*** (0.0034) 0.0208*** (0.0036) 0.00001 (0.00006) -0.000001 (0.0002) -0.0075 (0.0045) 0.0063* (0.0034) - Model 6 -0.0002 (0.0002) 0.00003 (0.0009) -0.0224** (0.0097) -0.0049 (0.0153) 0.0697*** (0.0029) -0.0023 (0.0022) 0.0097* (0.0051) 0.0535*** (0.0054) 0.0358*** (0.0059) 0.0073 (0.0047) 0.0154*** (0.0043) -0.0260*** (0.0032) 0.0072 (0.0052) -0.0158*** (0.0032) -0.0118*** (0.0034) 0.0207*** (0.0035) 0.00001 (0.00006) -0.00002 (0.0002) -0.0074 (0.0045) 0.0064* (0.0034) 0.0010 (0.0053) 0.0080 (0.0056) 0.0135** (0.0060) 0.0227*** (0.0060) 0.0186*** (0.0068) - 0.0194*** (0.0063) - - 72,854 72,854 Notes: Standard errors are clustered at the school zip code level and are shown in parentheses. The symbols *, **, and *** represent statistical significance at the 10 percent, 5 percent, and 1 percent levels, respectively. 22 Table 4: Sensitivity Analyses of BMI and Frequent Fruit and Vegetable Consumption to Alternative Model Specifications Per Capita Number of Full Service Restaurants Per Capita Number of Fast Food Restaurants Price of Fast Food Price of Fruit and Vegetables Mother Works Part-Time Mother Works Full-Time Frequent Fruit and Vegetable Consumption Model A Model B 0.0019*** 0.0019*** (0.0005) (0.0005) -0.0029 -0.0028 (0.0019) (0.0019) Model A -0.0039 (0.0029) 0.0084 (0.0124) Model B -0.0039 (0.0030) 0.0082 (0.0124) Model C -0.0033 (0.0029) 0.0074 (0.0124) 0.0669*** (0.0201) -0.3066** (0.1397) -0.3148** (0.1402) -0.3097** (0.1396) 0.2688 (0.2392) -0.1038 (0.0635) 0.2592 (0.2407) 0.3007 (0.2384) -0.0926 (0.0635) -0.0632* (0.0353) -0.0130 (0.0090) 0.0410*** (0.0073) 0.0684*** (0.0201) -0.0611* (0.0354) - BMI 0.1335*** (0.0508) - 0.1484*** (0.0509) Frequent Participation in -0.5593*** Physical Activity (0.0468) N 47,675 47,675 72,854 72,854 72,854 Notes: 1. Standard errors are clustered at the zip code level and are shown in parentheses. 2. The symbols *, **, and *** represent statistical significance at the 10 percent, 5 percent, and 1 percent levels, respectively. 3. Model A: Model 2 specification from Table 3. Model B: Model A without mothers’ work status. Model C: Model A with students’ sports participation. All of the models include socioeconomic variables: gender, age, grade, race/ethnicity, fathers’ education, mothers’ education, living arrangement, urbanization of residence, students’ weekly income, hours worked by student and year dummies. 23 Table 5: Explaining Trends in Fruit and Vegetable Consumption, BMI and Overweight with Alternative Model Specifications Frequent Fruit and Vegetable Consumption Year Effects (Omitted Year 1997) BMI Overweight Model 1 Model 2 Model 3 Model 1 Model 2 Model 3 Model 1 0.0046 (0.0123) -0.0113 (0.0139) -0.0100 (0.0139) -0.0220* (0.0133) -0.0325** (0.0143) -0.0076 (0.0136) 0.0086 (0.0123) -0.0064 (0.0137) 0.0012 (0.0138) -0.0115 (0.0134) -0.0154 (0.0159) 0.0128 (0.0146) 0.0135 (0.0110) -0.0018 (0.0113) 0.0058 (0.0116) -0.0115 (0.0115) -0.0084 (0.0128) 0.0107 (0.0123) 0.0992 (0.1000) 0.1870* (0.1119) 0.2656** (0.1142) 0.3893*** (0.1149) 0.4411*** (0.1185) 0.4525*** (0.1123) 0.0951 (0.1011) 0.1818 (0.1130) 0.2376** (0.1177) 0.3713*** (0.1191) 0.4406*** (0.1393) 0.4299*** (0.1277) 0.0373 (0.0731) 0.1226 (0.0767) 0.1569* (0.0802) 0.2936*** (0.0795) 0.2864*** (0.0866) 0.3376*** (0.0836) 0.0042 (0.0059) 0.0119* (0.0063) 0.0204*** (0.0070) 0.0298*** (0.0066) 0.0243*** (0.0069) 0.0246*** (0.0066) Food Prices and Restaurant Densities - Included Included - Included Included All Other Covariates - - Included - - Included Year 1998 Year 1999 Year 2000 Year 2001 Year 2002 Year 2003 Model 2 Model 3 0.0044 (0.0059) 0.0118* (0.0063) 0.0177*** (0.0070) 0.0263*** (0.0068) 0.0241*** (0.0080) 0.0229*** (0.0073) 0.0010 (0.0053) 0.0080 (0.0056) 0.0135** (0.0060) 0.0227*** (0.0060) 0.0186*** (0.0068) 0.0194*** (0.0063) - Included Included - - Included Notes: 1. Standard errors are clustered at the zip code level and are shown in parentheses. 2. The symbols *, **, and *** represent statistically significant changes in BMI relative to year 1997 at the 10 percent, 5 percent, and 1 percent levels, respectively. 24
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