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Worth Your Weight: Experimental Evidence on the Benefits of Obesity in Low-Income Countries

Resource type
Author/contributor
Title
Worth Your Weight: Experimental Evidence on the Benefits of Obesity in Low-Income Countries
Abstract
I study the economic value of obesity—a status symbol in poor countries associated with raised health risks. Randomizing decision-makers in Kampala, Uganda to view weight-manipulated portraits, I find that obesity is perceived as a reliable signal of wealth but not of beauty or health. Thus, leveraging a real-stakes experiment involving professional loan officers, I show that being obese facilitates access to credit. The large obesity premium, comparable to raising borrower self-reported earnings by over 60 percent, is driven by asymmetric information and drops significantly when providing more financial information. Notably, obesity benefits and wealth-signaling value are commonly overestimated, suggesting market distortions.
Publication
American Economic Review
Volume
113
Issue
9
Pages
2287-2322
Date
2023-09
Citation
Macchi, E. (2023). Worth Your Weight: Experimental Evidence on the Benefits of Obesity in Low-Income Countries. American Economic Review, 113, 2287–2322.
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