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A Reference Price Model of Sugar Consumption with Implications on Obesity

Obesity has increased dramatically in the past 25 years. The consumption of added sugar has increased significantly during the same time period. Previous research indicates a direct correlation between the consumption of added sugar and the prevalence of obesity. Sugar has been identified in multiple studies as having addictive or opiate-like qualities. Unquestionably, added sugar consumption has contributed to the current obesity epidemic. Here, we apply a reference price economic model to attempt to describe sugar consumption. Using consumption and price data from the Economic Research Service of the United
States Department of Agriculture, we made a reference price estimation of domestic refined sugar (sucrose) consumption. Using time-series econometric techniques, we tested the effects of internal and external reference prices, in the form of first differenced own price and price of other nutrient classes, respectively, on sugar demand. Results indicate that internal and, particularly, external reference prices do indeed play a role in consumption decisions. However, the model lacks socioeconomic variables that may help to provide a more complete consumption picture.

Identiferoai:union.ndltd.org:ndsu.edu/oai:library.ndsu.edu:10365/29853
Date January 2007
CreatorsEffertz, Cary Marshall
PublisherNorth Dakota State University
Source SetsNorth Dakota State University
Detected LanguageEnglish
Typetext/thesis
Formatapplication/pdf
RightsNDSU policy 190.6.2, https://www.ndsu.edu/fileadmin/policy/190.pdf

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