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
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Englisch
- Erschienen in
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Series: CESifo Working Paper ; No. 6911
Consumer Economics: Theory
Taxation and Subsidies: Efficiency; Optimal Taxation
Health: Government Policy; Regulation; Public Health
paternalism
obesity
extensive versus intensive margin
Runkel, Marco
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:21 MESZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Kalamov, Zarko
- Runkel, Marco
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2018