Tuesday, October 16, 2012

Journal Article of the Day: Does Money Burn Fat?

This has to be one of the best article titles I have seen in some time.

Essentially what the researchers found was that financial incentives can help people loose weight. This isn't exactly a shocking result, I would even argue that finding people didn't respond to the financial incentives would be more note worthy.  Still the concept that incentives matter is something that many people have a hard time understanding.

Does Money Burn Fat? Evidence from a Randomized Experiment

We test whether financial incentives have an effect on weight reduction in a randomized controlled trial involving 700 obese persons assigned to three experimental groups. While two treatment groups obtain €150 and €300, respectively, for achieving an individually assigned target weight within four months, a control group receives no such premium. The results indicate that the weight losses for the treatment groups are 2.6 and 2.9 percentage points higher than that achieved by the control group, raising the average total weight loss for the incentivized groups to 5 percent of the initial weight. This percentage is typically regarded as a threshold to improve the health status of the obese. Further evidence indeed indicates some health improvements. The higher reward causes only the group of obese women to lose more weight. Overall, the results suggest that financial incentives can motivate people to lose weight significantly.