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Temptation in consu...
Temptation in consumption and optimal taxation
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- Arvaniti, Maria (author)
- Department of Economics, University of Bologna, Italy
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- Sjögren, Tomas, 1967- (author)
- Umeå universitet,Handelshögskolan vid Umeå universitet
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(creator_code:org_t)
- Elsevier, 2023
- 2023
- English.
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In: Journal of Economic Behavior and Organization. - : Elsevier. - 0167-2681 .- 1879-1751. ; 205, s. 687-707
- Related links:
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https://urn.kb.se/re...
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Abstract
Subject headings
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- This article aims to integrate temptation preferences into the theory of optimal taxation with heterogenous agents and asymmetric information. Consumers are tempted to over-consume a commodity which may lead to an over-supply of labor. Resisting this temptation implies a utility cost and any policy that reduces this cost is welfare improving. We uncover novel channels for government intervention and the interaction between the welfare improving and redistributive roles of public policy. We also identify a commitment mechanism that works through the endogenous labor choice and affects the design and effectiveness of the optimal tax policy.
Subject headings
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
Keyword
- Commodity taxation
- Income taxation
- Optimal taxation
- Redistribution
- Self-control
- Temptation
Publication and Content Type
- ref (subject category)
- art (subject category)
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