Arbeitspapier

Paternalistic Taxation of Unhealthy Food and the Intensive versus Extensive Margin of Obesity

This paper shows that if an individual’s health costs are U-shaped in weight with a minimum at some healthy weight level and if the individual has both self control problems and rational motives for over- or underweight, the optimal paternalistic tax on unhealthy food mitigates the individual’s weight problem (intensive margin), but does not induce the individual to choose healthy weight (extensive margin). Implementing healthy weight requires a further distortion (e.g. subsidy on other goods), which may render the tax on unhealthy food inferior to the option of not taxing the individual at all. In addition, with heterogeneous individuals the optimal uniform paternalistic tax may have the negative side effect of rendering otherwise healthy individuals underweight.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 6911

Klassifikation
Wirtschaft
Consumer Economics: Theory
Taxation and Subsidies: Efficiency; Optimal Taxation
Health: Government Policy; Regulation; Public Health
Thema
sin tax
paternalism
obesity
extensive versus intensive margin

Ereignis
Geistige Schöpfung
(wer)
Kalamov, Zarko
Runkel, Marco
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2018

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kalamov, Zarko
  • Runkel, Marco
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2018

Ähnliche Objekte (12)