Obesity and bankruptcy: Evidence from US counties

Using annual county-level data on nonbusiness bankruptcy for the period 2005–2017 and obesity for the period 2004–2016, this paper finds that higher obesity rates are associated with higher bankruptcy rates beyond what can be explained by local economic conditions and demographic characteristics, state-specific economic shocks, and county-specific time trends. The magnitude suggests that a one-percentage point increase in the obesity rate is associated with a 0.02−0.03 increase (or a 1.0 percent increase) in Chapter 7 bankruptcy rates per 1000 residents and a 0.02−0.04 increase (or a 3–4 percent increase) in Chapter 13 bankruptcy rates per 1000 residents