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Addictive goods and taxes: A survey from an economic perspective

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Author Info
Nuria Badenes-Plá () (Universidad Complutense de Madrid)
Andrew M. Jones () (University of York)

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Abstract

In this paper we present an overview of the empirical evidence about the effectiveness of using taxation to influence addictive behaviour, and we address the normative question: should greater use be made of sin taxes to fund health care? First, we raise the desirability of linking health care financing and taxation of addictive goods, taking into account efficiency and equity principles. Secondly we present the approaches adopted by economists in the study of addiction and their policy implications. At the end, the empirical evidence of effectiveness of taxes is summarised.

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Publisher Info
Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 167 (2003)
Issue (Month): 4 (December)
Pages: 123-153
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Handle: RePEc:hpe:journl:y:2003:v:167:i:4:p:123-153

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Related research
Keywords: Addiction; tobacco; alcohol; sin taxes;

Find related papers by JEL classification:
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

References listed on IDEAS
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    Other versions:
  11. Douglas, Stratford, 1998. "The Duration of the Smoking Habit," Economic Inquiry, Oxford University Press, vol. 36(1), pages 49-64, January.
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  14. Matthew C. Farrelly & Jeremy W. Bray & Terry Pechacek & Trevor Woollery, 2001. "Response by Adults to Increases in Cigarette Prices by Sociodemographic Characteristics," Southern Economic Journal, Southern Economic Association, vol. 68(1), pages 156-165, July.
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