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Obesity and Smoking: Can We Catch Two Birds with One Tax?
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 fooddoi:10.2139/ssrn.2240180 fatcat:3lm7igd56fdktfb3qyki4u3ec4