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	The weight of Australian 
	children has increased markedly in recent decades, to the point where around 
	8 per cent are defined as obese (based on Body Mass Index), and 17 per cent 
	as overweight.
	While the prevalence of 
	obesity may have levelled off since the mid 1990s, it is still widely 
	considered to be too high.
	Childhood obesity has been 
	linked to a raft of physical and psychosocial health problems, including 
	type 2 diabetes and cardiovascular disease, as well as social stigmatisation 
	and low self-esteem.
	Simply put, obesity results 
	from an imbalance between energy consumed and expended. But the underlying 
	causes are complex and difficult to disentangle.
	 
		
		An economic perspective 
		considers how individuals respond to changes in incentives, and how they 
		make decisions involving tradeoffs between different consumption and 
		exercise choices, including how they spend their time.
	Governments need to consider 
	a range of issues in addressing childhood obesity.
	 
		
		Most of the costs of 
		obesity are borne by the obese themselves and their families.
		Market incentives to 
		provide information about the causes and prevention of obesity are weak, 
		creating a role for government. But unlike alcohol and tobacco 
		consumption, the externalities (spillovers on unrelated third parties) 
		associated with obesity are probably minor.
		Behavioural limitations 
		can influence how people use available information about preventing 
		obesity — even when it is available — and their responses to incentives 
		and tradeoffs. Children are particularly susceptible to these 
		limitations and have difficulty taking into account the future 
		consequences of their actions.
		Obesity prevalence varies 
		across the socioeconomic profile of the community, such that there can 
		be important distributional issues.
		The obese also consume a 
		disproportionate share of medical services, which, equity considerations 
		aside, adds to the costs of our public health system.
	There is only limited 
	evidence of interventions designed to address childhood obesity achieving 
	their goals.
	
	Notwithstanding the lack of 
	evidence of interventions reducing obesity, some studies suggest that they 
	can positively influence children's eating behaviours and levels of physical 
	activity, which in turn might influence obesity over time.
	The complex nature of the 
	problem suggests that policies need to be carefully designed to maximise 
	cost-effectiveness, and trialled, with a focus on evidence gathering, 
	information sharing, evaluation and consequent policy modification. |  |   |