Obesity and Smoking: Can We Catch Two Birds with One Tax?

Davide Dragone, Francesco Manaresi, Luca Savorelli
2013 Social Science Research Network  
The debate on tobacco and fat taxes often treats smoking and eating as independent behaviors. However, the available evidence shows that they are interdependent, which implies that policies against smoking or obesity may have larger scope than expected. To address this issue, we propose a dynamic rational model where eating and smoking are simultaneous choices that jointly a¤ect body weight and addiction to smoking. Focusing on direct and cross-price e¤ects, we compare tobacco taxes and food
more » ... es and we show that a single policy tool can reduce both smoking and body weight. In particular, food taxes can be more e¤ective than tobacco taxes at simultaneously ...ghting obesity and smoking.
doi:10.2139/ssrn.2240180 fatcat:3lm7igd56fdktfb3qyki4u3ec4