Sin taxes and self-control
Research output: Contribution to journal › Journal article › Research › peer-review
Standard
Sin taxes and self-control. / Schmacker, Renke; Smed, Sinne.
In: American Economic Journal: Economic Policy, Vol. 15, No. 3, 2023, p. 1-34.Research output: Contribution to journal › Journal article › Research › peer-review
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
TY - JOUR
T1 - Sin taxes and self-control
AU - Schmacker, Renke
AU - Smed, Sinne
N1 - Publisher Copyright: © (2023), (American Economic Association). All Rights Reserved.
PY - 2023
Y1 - 2023
N2 - According to theory, “sin taxes” are welfare improving if consumers with low self-control respond at least as much to the tax as consumers with high self-control. We investigate empirically if demand response to soft drink and fat tax variations in Denmark depends on consumers’ self-control. We use a unique home-scan panel that includes a survey measure of self-control. When taxes increase, consumers with low self-control reduce purchases less strongly than consumers with high self-control. When taxes decrease, both groups increase their purchases similarly. The results show an asymmetry in price elasticities by self-control that is more pronounced when taxes increase.
AB - According to theory, “sin taxes” are welfare improving if consumers with low self-control respond at least as much to the tax as consumers with high self-control. We investigate empirically if demand response to soft drink and fat tax variations in Denmark depends on consumers’ self-control. We use a unique home-scan panel that includes a survey measure of self-control. When taxes increase, consumers with low self-control reduce purchases less strongly than consumers with high self-control. When taxes decrease, both groups increase their purchases similarly. The results show an asymmetry in price elasticities by self-control that is more pronounced when taxes increase.
U2 - 10.1257/pol.20200479
DO - 10.1257/pol.20200479
M3 - Journal article
AN - SCOPUS:85169062424
VL - 15
SP - 1
EP - 34
JO - American Economic Journal: Economic Policy
JF - American Economic Journal: Economic Policy
SN - 1945-7731
IS - 3
ER -
ID: 366504782