Umeň Economic Studies, Department of Economics, Umeň University
Optimal Paternalism: Sin Taxes and Health Subsidies
() and Linda Thunstr÷m
Abstract: The starting point for this paper is the potential
self-control problem underlying the consumption of unhealthy food. The
purpose is to analyze public policies, which are designed to correct for
the welfare loss associated with such behavior. Contrary to previous
studies, our analysis suggests that subsidies on wealth and health capital
are part of the policy package, which can be used to implement a socially
optimal resource allocation.
Keywords: Health; Quasi-Hyperbolic Discounting; Taxes; Subsidies; (follow links to similar papers)
JEL-Codes: D61; D62; H21; I18; (follow links to similar papers)
15 pages, May 11, 2005
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