A Theory of LTR Junk-food Consumption

Amnon Levy

Economics Working Papers from School of Economics, University of Wollongong, NSW, Australia

Abstract: LTR junk-food consumption balances the marginal satisfaction with the marginal deterioration of health. An LTR person discounts the instantaneous marginal satisfaction from junk-food consumption by its implications for his survival probability. His change rate of health evaluation is increased (decreased) by junk-food consumption when health is better (worse) than a critical level. The moderating direct effects of age and relative price on junk-food consumption may be amplified, or dimmed, by the change in his health. The stationary health of a person ignoring his age declines with his time-preference rate and rises with the marginal effect of junk food on his intrinsic health-improvement rate.

Keywords: junk food; health food; relative price; relative taste; risk; natural recovery; full-capacity income; expected lifetime utility; rational consumption; health; health value (search for similar items in EconPapers)
JEL-codes: I12 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2003
New Economics Papers: this item is included in nep-agr, nep-edu and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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