Abstract:
:This study examines whether taxes on unhealthy food are suitable for internalizing intergenerational externalities inflicted by parents when they decide on their children's diet. In an overlapping generations (OLG) model with an imperfectly altruistic parent, the optimal steady-state tax rate on unhealthy food is strictly positive. However, it is only second-best because, in addition to reducing unhealthy consumption by the child, it distorts the parent's unhealthy consumption. Surprisingly, the optimal tax may underinternalize or overinternalize the marginal damage.
journal_name
Health Econjournal_title
Health economicsauthors
Kalamov Z,Runkel Mdoi
10.1002/hec.4024subject
Has Abstractpub_date
2020-08-01 00:00:00pages
938-944issue
8eissn
1057-9230issn
1099-1050journal_volume
29pub_type
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