| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP15476 |
| DP15476 Price floors and externality correction | |
| Rachel Griffith; Martin O'Connell; Kate Smith | |
| 发表日期 | 2020-11-20 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | We study the introduction of a price floor for alcohol that is aimed at correcting for negative consumption externalities. Policy effectiveness depends on whether the measure achieves large reductions in the most socially costly consumption. We exploit a natural experiment to show the policy raised prices of cheap products favored by heavy consumers, and achieved large demand reductions among this group. We use pre-reform data to estimate a model of consumer demand that is able to match these patterns, and use this to compare the welfare performance of a price floor with the counterfactual introduction of an ethanol tax. We show that if the marginal external cost of drinking is at least moderately higher for heavy drinkers, then a price floor is better targeted at the most socially costly consumption and therefore achieves larger welfare gains than an ethanol tax. Although the price floor leads to a larger fraction of the consumer burden falling on those with low incomes compared with the tax reform, it leads to a consumer burden that is smaller for all income groups. |
| 主题 | Industrial Organization ; Public Economics |
| 关键词 | Externality Corrective taxes Alcohol Price floors |
| URL | https://cepr.org/publications/dp15476 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/544472 |
| 推荐引用方式 GB/T 7714 | Rachel Griffith,Martin O'Connell,Kate Smith. DP15476 Price floors and externality correction. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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