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Author:Yaniv, G.
Rosin, O.
Tobol, Y.
Title:Junk-food, home cooking, physical activity and obesity: The effect of the fat tax and the thin subsidy
Journal:Journal of Public Economics
2009 : JUN, VOL. 93:5-6, p. 823-830
Index terms:food
taxation
subsidies
Freeterms:households
Language:eng
Abstract:A tax on junk-foods, known as 'fat tax', has been proposed in order to reduce the growing prevalence of obesity. This paper deals with the fat tax and thin subsidy within a food-intake rational-choice model. Assuming that healthy meals are cooked at home with purchased ingredients and time input, examined are the effects on obesity of a tax on junk-food meals and a subsidy to cooking ingredients etc. Among others, it is shown that for a non-weight conscious individual a fat tax will unambiguously reduce obesity, while a thin subsidy may increase obesity.
SCIMA record nr: 274694
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