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Valuation of health inputs and convenience in new products

Nordström, Jonas LU (2013) In Working Paper No 2013:7
Abstract
The prevalence of illnesses related to the modern diet and a more sedentary lifestyle has increased markedly over the last few decades. There is therefore a need for effective strategies to promote health and to reduce the prevalence of diet-related diseases. In this paper, we study the willingness to pay for a new concept, healthy canteen takeaways. In the analysis, we depart from a household production model. To control for possible endogeneity of the health state, we use a control function approach. The result suggests that health inputs, such as low-fat meat and a larger amount of vegetables, increase respondents’ utility. Respondents’ valuations of the convenience attribute are very heterogenous, with both positive and negative... (More)
The prevalence of illnesses related to the modern diet and a more sedentary lifestyle has increased markedly over the last few decades. There is therefore a need for effective strategies to promote health and to reduce the prevalence of diet-related diseases. In this paper, we study the willingness to pay for a new concept, healthy canteen takeaways. In the analysis, we depart from a household production model. To control for possible endogeneity of the health state, we use a control function approach. The result suggests that health inputs, such as low-fat meat and a larger amount of vegetables, increase respondents’ utility. Respondents’ valuations of the convenience attribute are very heterogenous, with both positive and negative values. From a policy perspective, the IV estimation turns out to be of importance, with a sign change in the valuation of low-fat meals for individuals with a poor health state (high BMI). (Less)
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author
organization
publishing date
type
Working Paper
publication status
submitted
subject
keywords
endogen, discrete choice, health, household production, instrumental variable
in
Working Paper No 2013:7
issue
7
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
81361324-c97d-4b60-8b7d-44bed2713eef (old id 4191164)
date added to LUP
2013-12-04 15:15:17
date last changed
2016-06-30 21:03:09
@misc{81361324-c97d-4b60-8b7d-44bed2713eef,
  abstract     = {The prevalence of illnesses related to the modern diet and a more sedentary lifestyle has increased markedly over the last few decades. There is therefore a need for effective strategies to promote health and to reduce the prevalence of diet-related diseases. In this paper, we study the willingness to pay for a new concept, healthy canteen takeaways. In the analysis, we depart from a household production model. To control for possible endogeneity of the health state, we use a control function approach. The result suggests that health inputs, such as low-fat meat and a larger amount of vegetables, increase respondents’ utility. Respondents’ valuations of the convenience attribute are very heterogenous, with both positive and negative values. From a policy perspective, the IV estimation turns out to be of importance, with a sign change in the valuation of low-fat meals for individuals with a poor health state (high BMI).},
  author       = {Nordström, Jonas},
  keyword      = {endogen,discrete choice,health,household production,instrumental variable},
  language     = {eng},
  number       = {7},
  publisher    = {ARRAY(0x8ed8938)},
  series       = {Working Paper No 2013:7},
  title        = {Valuation of health inputs and convenience in new products},
  year         = {2013},
}