The purpose of this study is to examine the effects of obesity rates on per capita state health care expenditures. A two-stage least square regression model is used. In the first stage of the estimation, factors influencing obesity rates are determined. The determinants of obesity rates are outlined throughout the research process. In the second stage, the impact of obesity rates on per capita health expenditures across states is evaluated. The empirical results indicate that obesity rates do indeed have a direct effect on state health care expenditures. After reviewing the project’s results, various solutions are proposed as possible methods to slow and perhaps reverse growing obesity rates with the objective of reducing health care expenditures. The solutions offered may possibly decrease the prevalence of obesity across the nation and in turn lower per capita health care spending.
Recommended CitationCollins, Kristen, "The Effect of Obesity on State Health Care Expenditures: An Empirical Analysis" (2009). Honors Projects in Economics. Paper 7.