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The public finance of healthy behavior

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  • Robert Rosenman

Abstract

Lifestyle can often affect the likelihood an individual will have a future illness. Subsidies often mitigate the consequences of poor lifestyle choices. In this paper we explore tax-subsidy policies that lower the consequences of incurring a non-infectious disease. We find that a funding mechanism consistent with current US policy lowers the investment in healthy lifestyles by both the wealthy, who pay taxes, and the poor, who receive subsidies. We also explore alternative policy interventions such as investing in research to lessen the impact or probability of the disease if an individual gets sick.
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  • Robert Rosenman, 2011. "The public finance of healthy behavior," Public Choice, Springer, vol. 147(1), pages 173-188, April.
    • Handle: RePEc:kap:pubcho:v:147:y:2011:i:1:p:173-188
    DOI: 10.1007/s11127-010-9611-z
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    Cited by:

    1. Torben M. Andersen & Joydeep Bhattacharya, 2014. "A dynamic-efficiency rationale for public investment in the health of the young," Canadian Journal of Economics, Canadian Economics Association, vol. 47(3), pages 697-719, August.
    2. Lydia Lawless & Andreas Drichoutis & Rodolfo Nayga, 2013. "Time preferences and health behaviour: a review," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 1(1), pages 1-19, December.
    3. Peter T. Leeson & Henry A. Thompson, 2023. "Public choice and public health," Public Choice, Springer, vol. 195(1), pages 5-41, April.

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    More about this item

    Keywords

    Lifestyle; Health; Policy; Taxes; Subsidies; I1; H2; H4;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods

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