Quality standards versus nutritional taxes: Health and welfare impacts with strategic firms

Réquillart, Vincent, Soler, Louis-Georges and Zang, Yu (2016) Quality standards versus nutritional taxes: Health and welfare impacts with strategic firms. Journal of Health Economics, 50. pp. 268-285.

This is the latest version of this item.

Full text not available from this repository.
Official URL: http://tse-fr.eu/pub/30797

Abstract

The goal of this paper is to better understand firms' strategic reactions to nutritional policies targeting food quality improvements and to derive optimal policies. We propose a model of product differentiation, taking into account the taste and health characteristics of products. We study how two firms react to alternative policies: an MQS policy, linear taxation of the two goods on the market, and taxation of the lowquality good. The MQS and the taxation of the low-quality product are the preferred options by a social planner. If taste is moderately important, the MQS policy is chosen by a populist and a paternalist social planner. If taste is a major component of choice, the populist planner chooses to tax the low-quality product whereas the paternalist planner prefers the MQS policy. Finally, for a paternalist social planner, an MQS-based policy always allows for higher levels of welfare than an information policy alone.

Item Type: Article
Language: English
Date: December 2016
Refereed: Yes
Uncontrolled Keywords: Taxation, MQS, Product differentiation, Strategic pricing, Nutritional policy
JEL codes: I18 - Government Policy; Regulation; Public Health
L13 - Oligopoly and Other Imperfect Markets
Q18 - Agricultural Policy; Food Policy
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 14 Sep 2016 08:33
Last Modified: 07 Mar 2018 13:23
OAI ID: oai:tse-fr.eu:30797
URI: http://publications.ut-capitole.fr/id/eprint/22362

Available Versions of this Item

Actions (login required)

View Item View Item