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Comments on: Beer consumption and information http://www.tvhe.co.nz/2009/04/29/beer-consumption-and-information/ The Visible Hand in Economics Thu, 30 Apr 2009 18:13:04 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Healthy Diet Lets Woman Lose Thirty Pounds in Thirty Days http://www.tvhe.co.nz/2009/04/29/beer-consumption-and-information/#comment-19418 Thu, 30 Apr 2009 18:13:04 +0000 http://www.tvhe.co.nz/?p=3672#comment-19418 Hi, interesting post. I have been thinking about this issue,so thanks for writing. I’ll definitely be subscribing to your site.

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/04/29/beer-consumption-and-information/#comment-19396 Thu, 30 Apr 2009 03:06:29 +0000 http://www.tvhe.co.nz/?p=3672#comment-19396 @Eric Crampton

I agree that there are problems with linear taxes on non-linear externalities. And where it is possible to more direct target the actual behaviour it is preferable.

However, I was only suggesting it in the abstract – I had no practical externality tax in mind 🙂

]]> By: Eric Crampton http://www.tvhe.co.nz/2009/04/29/beer-consumption-and-information/#comment-19389 Wed, 29 Apr 2009 22:51:55 +0000 http://www.tvhe.co.nz/?p=3672#comment-19389 When you say externality tax, Matt, I wonder what you’d propose that’s preferable to the current tax. There are huge problems with any linear tax where negative externalities are convex, but it’s well-neigh impossible to improve on it absent microchipping people to keep track of their individual alcohol consumption. I’d argue instead for maintaining the linear tax (not increasing it, not increasing the drinking age, not lowering the alcohol limit for drivers) but combining the current tax with increased penalties for actually being caught doing bad things while drunk. The only real negative externalities from drinking are where folks cause damage to others (persons or property) while drunk where they’d not have done so if sober. So penalize the behaviors!

]]> By: Matt Nolan http://www.tvhe.co.nz/2009/04/29/beer-consumption-and-information/#comment-19372 Tue, 28 Apr 2009 21:11:16 +0000 http://www.tvhe.co.nz/?p=3672#comment-19372 @Peter Cresswell

Note the inverted commas. I just want people to be able to make informed decisions – then the level of beer consumption will be perfect 🙂

]]> By: Peter Cresswell http://www.tvhe.co.nz/2009/04/29/beer-consumption-and-information/#comment-19371 Tue, 28 Apr 2009 21:09:00 +0000 http://www.tvhe.co.nz/?p=3672#comment-19371 Did you say reduce beer consumption . . . ?

Quel horreur!

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