The use of economic tools to develop a consensus on alcohol policies within and between jurisdictions
AbstractAlcohol policies encounter major problems because of the lack of consensus within and between jurisdictions. Tools that economists have developed in other contexts may be of use in addressing these problems. The consensus between neighboring jurisdictions can be facilitated when a jurisdiction with higher alcohol taxes and greater alcohol revenue offers to share part of that revenue with the neighbor with lower alcohol revenue and alcohol taxes. The final solution can result in both jurisdictions having larger revenues and in reduced alcohol consumption. Decreasing support for alcohol curbing policies within some jurisdictions could probably be reversed if such tools as revenue neutrality of alcohol taxes, heavier taxation of heavy drinkers, introduction of minimum prices and substitution of low-quality drinks with high-quality food and drinks were to be employed, and if greater attention were given to the determinants of alcohol needs and, in particular, of “happiness.”
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 21941.
Date of creation: 18 Apr 2007
Date of revision: 18 Apr 2007
Publication status: Published in Contemporary Drug Problems 4.34(2008): pp. 729-751
Alcohol needs; progressive taxation; revenue sharing; revenue transfers; minimum price; budget neutrality; substitution;
Find related papers by JEL classification:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
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