Optimal internality taxation of product attributes
By: Gerster, Andreas and Kramm, Michael
.
Material type: 
BookPublisher: American Economic Journal: Economic Policy Description: 16(3), Aug, 2024: p.394-419.
In:
American Economic Journal: Economic PolicySummary: This paper explores how a benevolent policymaker should optimally tax (or subsidize) product attributes when consumers are behaviorally biased. We demonstrate that market choices are informative about biases, which can be exploited for targeting biased consumers via a nonlinear tax schedule. We show that the properties of this schedule depend on few parameters of the joint distribution of consumer valuations and biases. Furthermore, we provide a novel justification for behaviorally motivated product standards and derive when a combination of taxes and standards is optimal. We illustrate our findings based on a numerical example from the lightbulb market.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/pol.20220416
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
|
Indian Institute of Public Administration | 16(3), Aug, 2024: p.394-419 | Available | AR133263 |
This paper explores how a benevolent policymaker should optimally tax (or subsidize) product attributes when consumers are behaviorally biased. We demonstrate that market choices are informative about biases, which can be exploited for targeting biased consumers via a nonlinear tax schedule. We show that the properties of this schedule depend on few parameters of the joint distribution of consumer valuations and biases. Furthermore, we provide a novel justification for behaviorally motivated product standards and derive when a combination of taxes and standards is optimal. We illustrate our findings based on a numerical example from the lightbulb market.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/pol.20220416
There are no comments for this item.