Haavio, Markus; Kotakorpi, Kaisa - In: European Economic Review 55 (2011) 4, pp. 575-594
We analyse the determination of taxes on harmful goods when consumers have self-control problems. We show that under … reasonable assumptions, the socially optimal corrective tax exceeds the average distortion caused by self-control problems …. Further, we analyse how individuals with self-control problems would vote on taxes on the consumption of harmful goods, and …