Ítem
Solo Metadatos
Taxing Sin Goods and Subsidizing Health Care
Título de la revista
Autores
Cremer, Helmuth
De Donder, Philippe
Maldonado, Darío
Pestieau, Pierre
Resumen
Abstract
We study the taxation of sin goods in a two-period, three-good model. Individuals can buy health care to compensate for the damages caused by their earlier sin-good consumption. Individuals are myopic and underestimate the effect of the sinful consumption on health; in their second period, they may acknowledge their mistake or persist in their error. We characterize and compare the first-best and the (linear) second-best taxes in these different settings. In particular, we examine how the results are affected by the way sin-good consumption and health care interact in health production technology. © 2011 The editors of The Scandinavian Journal of Economics.
Palabras clave
Keywords
Behavioral response , Consumption behavior , Health care , Model test , Paternal effect , Subsidy system , Tax system , Behavioral economics , Dual self versus single self , Paternalism
