Time preference and perceptions about government spending and tax: Smokers’ dependence on government support
Previous studies show that smokers are likely to be more impatient and prefer immediate benefits compared with non-smokers. Thus, smokers are regarded as myopic people and therefore have a high time discount rate. Such a tendency is thought to be related not only to short-term benefits (as opposed to long-term benefits), but also free-riding behavior. Using individual data, this paper examines which types of government spending smokers with such characteristics prefer. The important findings are: (1) smokers consider the amount of government spending on social security and unemployment measures to be low and (2) smokers perceive their tax burden to be high. These findings imply that smokers tend to place greater importance on public expenditure that they will personally benefit from, but they are less willing to bear its cost. It is inferred from the estimation results that those who are myopic do not consider long-term benefits, which can result in a number of personal problems in the future, and they anticipate government expenditure will help them with such problems. That is, to enjoy the benefit of free riding, seemingly myopic people are more likely to prefer expenditure on social security and unemployment measures.
|Date of creation:||25 Mar 2014|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Khwaja, Ahmed & Sloan, Frank & Chung, Sukyung, 2006. "Learning about individual risk and the decision to smoke," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 683-699, July.
- Harrison, Glenn W. & Lau, Morten I. & Rutström, E. Elisabet, 2010. "Individual discount rates and smoking: Evidence from a field experiment in Denmark," Journal of Health Economics, Elsevier, vol. 29(5), pages 708-717, September.
- Liam Delaney & Francis O'Toole, 2006.
"Preferences for specific social welfare expenditure in Ireland,"
Open Access publications
10197/587, School of Economics, University College Dublin.
- Liam Delaney & Francis O'Toole, 2008. "Preferences for specific social welfare expenditures in Ireland," Applied Economics Letters, Taylor & Francis Journals, vol. 15(12), pages 985-989.
- Liam Delaney & Francis O' Toole, 2006. "Preferences for Specific Social Welfare Expenditure in Ireland," Working Papers 200608, Geary Institute, University College Dublin.
- Dora L. Costa & Matthew E. Kahn, 2013.
"Energy Conservation “Nudges” And Environmentalist Ideology: Evidence From A Randomized Residential Electricity Field Experiment,"
Journal of the European Economic Association,
European Economic Association, vol. 11(3), pages 680-702, 06.
- Dora L. Costa & Matthew E. Kahn, 2010. "Energy Conservation "Nudges" and Environmentalist Ideology: Evidence from a Randomized Residential Electricity Field Experiment," NBER Working Papers 15939, National Bureau of Economic Research, Inc.
- Oh, Hyungna & Hong, Jong Ho, 2012. "Citizens’ trust in government and their willingness-to-pay," Economics Letters, Elsevier, vol. 115(3), pages 345-347.
- John R. Lott & Jr. & Lawrence W. Kenny, 1999. "Did Women's Suffrage Change the Size and Scope of Government?," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1163-1198, December.
- Laibson, David I., 1997.
"Golden Eggs and Hyperbolic Discounting,"
4481499, Harvard University Department of Economics.
- Myong-Il Kang & Shinsuke Ikeda, 2010. "Time Discounting and Smoking Behavior under Tax Hikes," ISER Discussion Paper 0782, Institute of Social and Economic Research, Osaka University.
- Eiji Yamamura, 2014.
"Trust in government and its effect on preferences for income redistribution and perceived tax burden,"
Economics of Governance,
Springer, vol. 15(1), pages 71-100, February.
- Yamamura, Eiji, 2012. "Trust in government and its effect on preferences for income redistribution and perceived tax burden," MPRA Paper 39833, University Library of Munich, Germany.
- Eiji Yamamura & Haruo Kondoh, 2013.
"Government Transparency And Expenditure In The Rent-Seeking Industry: The Case Of Japan For 1998–2004,"
Contemporary Economic Policy,
Western Economic Association International, vol. 31(3), pages 635-647, 07.
- Eiji Yamamura & Haruo Kondoh, 2012. "Government transparency and expenditure in the rent-seeking industry: The case of Japan for 1998–2004," EERI Research Paper Series EERI_RP_2012_13, Economics and Econometrics Research Institute (EERI), Brussels.
- Yamamura, Eiji & Kondoh, Haruo, 2011. "Government transparency and expenditure in the rent-seeking industry: the case of Japan for 1998-2004," MPRA Paper 29689, University Library of Munich, Germany.
- Cuccia, Andrew D. & Carnes, Gregory A., 2001. "A closer look at the relation between tax complexity and tax equity perceptions," Journal of Economic Psychology, Elsevier, vol. 22(2), pages 113-140, April.
- Francis O'Toole & Liam Delaney, 2008.
"Individual, household and gender preferences for social transfers,"
Open Access publications
10197/595, School of Economics, University College Dublin.
- Delaney, Liam & O'Toole, Francis, 2008. "Individual, household and gender preferences for social transfers," Journal of Economic Psychology, Elsevier, vol. 29(3), pages 348-359, June.
- Liam Delaney & Francis O'Toole, 2007. "Individual, Household and Gender Preferences for Social Transfers," Working Papers 200703, Geary Institute, University College Dublin.
- Ikeda, Shinsuke & Kang, Myong-Il & Ohtake, Fumio, 2010. "Hyperbolic discounting, the sign effect, and the body mass index," Journal of Health Economics, Elsevier, vol. 29(2), pages 268-284, March.
- John Creedy & Shuyun May Li & Solmaz Moslehi, 2011. "The Composition Of Government Expenditure: Economic Conditions And Preferences," Economic Inquiry, Western Economic Association International, vol. 49(1), pages 94-107, 01.
- Lisa R. Anderson & Jennifer M. Mellor, 2007.
"Predicting Health Behaviors with an Experimental Measure of Risk Preference,"
59, Department of Economics, College of William and Mary.
- Anderson, Lisa R. & Mellor, Jennifer M., 2008. "Predicting health behaviors with an experimental measure of risk preference," Journal of Health Economics, Elsevier, vol. 27(5), pages 1260-1274, September.
- Takanori Ida & Rei Goto, 2009. "Simultaneous Measurement Of Time And Risk Preferences: Stated Preference Discrete Choice Modeling Analysis Depending On Smoking Behavior," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(4), pages 1169-1182, November.
- James Ferris, 1983. "Demands for public spending: An attitudinal approach," Public Choice, Springer, vol. 40(2), pages 135-154, January.
- Lalith Munasinghe & Nachum Sicherman, 2006. "Why Do Dancers Smoke? Smoking, Time Preference, and Wage Dynamics," Eastern Economic Journal, Eastern Economic Association, vol. 32(4), pages 595-616, Fall.
- Lars Feld & Claus Larsen, 2012. "Self-perceptions, government policies and tax compliance in Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 78-103, February.
- Hatzinikolaou, Dimitris & Ahking, Francis, 1995. "Government Spending and Consumer Attitudes Toward Risk, Time Preference, and Intertemporal Substitution: An Econometric Analysis," MPRA Paper 46164, University Library of Munich, Germany.
- Guglielmo Barone & Sauro Mocetti, 2009.
"Tax morale and public spending inefficiency,"
Temi di discussione (Economic working papers)
732, Bank of Italy, Economic Research and International Relations Area.
- Ida, Takanori & Goto, Rei, 2009. "Interdependency among addictive behaviours and time/risk preferences: Discrete choice model analysis of smoking, drinking, and gambling," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 608-621, August.
- Costa, Dora L. & Kahn, Matthew E., 2013. "Do liberal home owners consume less electricity? A test of the voluntary restraint hypothesis," Economics Letters, Elsevier, vol. 119(2), pages 210-212.
- Dastrup, Samuel R. & Graff Zivin, Joshua & Costa, Dora L. & Kahn, Matthew E., 2012.
"Understanding the Solar Home price premium: Electricity generation and “Green” social status,"
European Economic Review,
Elsevier, vol. 56(5), pages 961-973.
- Samuel Dastrup & Joshua S. Graff Zivin & Dora L. Costa & Matthew E. Kahn, 2011. "Understanding the Solar Home Price Premium: Electricity Generation and "Green" Social Status," NBER Working Papers 17200, National Bureau of Economic Research, Inc.
- Dimitris Hatzinikolaou, 1997. "Does government growth reduce precautionary saving?," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 419-423.
- Grant Miller, 2008. "Women's Suffrage, Political Responsiveness, and Child Survival in American History," The Quarterly Journal of Economics, Oxford University Press, vol. 123(3), pages 1287-1327.
- Samuel Preston & Haidong Wang, 2006. "Sex mortality differences in The United States: The role of cohort smoking patterns," Demography, Springer;Population Association of America (PAA), vol. 43(4), pages 631-646, November.
- Schokkaert, Erik, 1987. "Preferences and demand for local public spending," Journal of Public Economics, Elsevier, vol. 34(2), pages 175-188, November.
- Masayo Sato & Yasushi Ohkusa, 2003. "The relationship between smoking initiation and time discount factor, risk aversion and information," Applied Economics Letters, Taylor & Francis Journals, vol. 10(5), pages 287-289, April.
- Liam Delaney & Francis O'Toole, 2007. "Decomposing demand for public expenditure in Ireland," Applied Economics Letters, Taylor & Francis Journals, vol. 14(15), pages 1091-1095.
- Michael Daly & Liam Delaney & Colm P. Harmon, 2009. "Psychological and Biological Foundations of Time Preference," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 659-669, 04-05.
- Gemmell, Norman & Morrissey, Oliver & Pinar, Abuzer, 2003. "Tax perceptions and the demand for public expenditure: evidence from UK micro-data," European Journal of Political Economy, Elsevier, vol. 19(4), pages 793-816, November.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:55659. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.