In an effort to reduce the growing prevalence of obesity, a tax on junk-foods, known as 'fat tax', has been proposed, the revenue from which could be used to finance a 'thin subsidy' for healthy foods or exercising equipment. The present paper addresses the fat tax and thin subsidy within a...

The economic literature on audit design has almost entirely ignored tax agencies' practical reliance on whistle-blowers for the successful conduct of tax investigations. The authors compare the tax agency's performance under a one-round blind-audit policy and a two-round...