They point out that, for an addict, smoking in different periods is complementary. That means that taxes to overcome time inconsistency problems are substitutes: if your tax in one period is too low then you can compensate by raising it in another period. The same holds in a spatial sense: if you can’t prevent smoking in the home then this rationale suggests that over-regulating smoking in public places is optimal. It’s an interesting way to look at banning smoking in public places because it is specifically targeting the welfare of the smokers, not considering externalities to third parties.
http://www.tvhe.co.nz/wp-content/uploads/logo-for-enfold-photoshop.png 0 0 jamesz http://www.tvhe.co.nz/wp-content/uploads/logo-for-enfold-photoshop.png jamesz2008-04-23 13:32:312008-04-23 13:32:31More smoking in public