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• W2183685113 abstract "Over the last 20 years the number of overweight and obese has risen in Denmark as well as globally. More recently, it has been proposed in the media that a di eren- tiated VAT should be employed in order to change people's dietary habits towards a more healthy diet. This paper seeks to analyse the welfare implications of us- ing price instruments in health policy. We do this by estimating the Almost Ideal (AI) Demand System of Deaton and Muellbauer (1980a) and using the parameters to perform a counterfactual policy experiment where the VAT on sugary foods is increased by 12.5 percentage points. Implications are analysed in two ways; firstly, we estimate the aggregate welfare loss from the tax distortion to DKK 1.69 billion. This can be used by health professionals as a benchmark criterion for the monetized welfare gains from e.g. healthier diets. Secondly, since micro data has been em- ployed it is possible to analyse the distribution of welfare losses on household level. We conclude that losses and gains appear to follow the same distribution. All in all, we find that VAT di erentiation is a good instrument in Danish health policy." @default.
• W2183685113 created "2016-06-24" @default.
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• W2183685113 date "2011-01-01" @default.
• W2183685113 modified "2023-09-26" @default.
• W2183685113 title "Taxation as a Health Policy Instrument" @default.
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