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BEGIN:VEVENT
DTSTAMP:20260405T115404Z
DTSTART;VALUE=DATE-TIME:20200218T140000
DTEND;VALUE=DATE-TIME:20200218T150000
SUMMARY:Renke Schmacker (DIW Berlin)
TZID:Europe/London
UID:20200218-8a1785d77042ef8b0170448c88e75f1d@warwick.ac.uk
CREATED:20200214T163345Z
DESCRIPTION:Sin Taxes and Self Control "Sin taxes" can be welfare improvi
 ng if they help people with low self-control reduce their consumption of
  unhealthy goods. A number of theoretical papers show that this requires
  consumers with low self-control to respond at least as strongly to a ta
 x as people with high self-control. In this paper\, we investigate this 
 relationship in the context of two sets of sin tax reforms in Denmark: f
 irst\, the increase of the soft drink tax in 2012 and its repeal in 2014
 \, and\, second\, the fat tax introduction in 2011 and its repeal in 201
 3. We assess the consumption response empirically using the GfK Consumer
 scan household panel. With this data\, we can separate the sample in con
 sumers with low and high levels of self-control using a survey measure. 
 We find that consumers with low self-control reduce consumption less str
 ongly than consumers with high self-control when taxes go up\, but incre
 ase consumption to a similar extent when taxes go down. Hence\, we docum
 ent an asymmetry in the responsiveness to increasing and decreasing pric
 es. We show theoretically that these observations are consistent with a 
 model of self-control and rational habit formation. The results suggest 
 that price instruments may not be an effective tool for targeting self-c
 ontrol problems.
LOCATION:Wolfson
CATEGORIES:
LAST-MODIFIED:20200214T163345Z
ORGANIZER;CN=Sergio Alessandro Castagnetti:
END:VEVENT
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