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.
Keywords: Bankruptcy; Health; Medical expense; Obesity; Personal finance.
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