The Incidence of Sin Taxes

Kaisa Kotakorpi
Additional contact information
Kaisa Kotakorpi: School of Management, University of Tampere

No 648, Working Papers from Tampere University, Faculty of Management and Business, Economics

Abstract: We show that contrary to traditional incidence analysis, the burden of sin taxes does not necessarily fall most heavily on individuals with the highest level of consumption. We also derive a condition for cases where sin taxes improve individual welfare. We further argue that taxes on goods such as unhealthy food can be progressive when consumers have time-inconsistent preferences.

Keywords: tax incidence; self-control (search for similar items in EconPapers)
JEL-codes: H22 H30 I18 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2006-04
References: Add references at CitEc
Citations:

Downloads: (external link)
http://urn.fi/urn:isbn:951-44-6625-X First version, 2006 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tam:wpaper:0648

Access Statistics for this paper

More papers in Working Papers from Tampere University, Faculty of Management and Business, Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sami Remes ().