Prices and Health: Identifying the Effects of Nutrition, Exercise, and Medication Choices on Blood Pressure

Shih-Neng Chen, Jason Shogren, Peter Orazem and Thomas D. Crocker

American Journal of Agricultural Economics, 2002, vol. 84, issue 4, 990-1002

Abstract: Biomedical studies suggest that a person's behavior matters to health, but these studies usually treat human choice as exogenous. This study shows that individual choices on nutrient intake, exercise, and use of medication are influenced by exogenous food prices, wages, and non-labor income. Using these exogenous variables as instruments for endogenous behavior makes a big difference in the estimated impact of nutrient intake, exercise, and medication on blood pressure. For example, application of instrumental variables methods changes the impact of sodium on blood pressure from positive to negative and significant. Copyright 2002, Oxford University Press.

Date: 2002
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