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- handle: 10670/1.rdovlu
- hal: hal-03158749
- doi: 10.1016/j.jeem.2021.102421
- PII: S0095-0696(21)00004-8
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jeem.2021.102421
http://creativecommons.org/licenses/by-nc/ , info:eu-repo/semantics/OpenAccess
Mots-clés
Public safetyE Environmental health Imperfect taxation Value per statistical life Distortionary taxation Wealth inequality Risk aversion D - Microeconomics/D.D6 - Welfare Economics/D.D6.D61 - Allocative Efficiency • Cost–Benefit Analysis H - Public Economics/H.H2 - Taxation, Subsidies, and Revenue/H.H2.H21 - Efficiency • Optimal Taxation H - Public Economics/H.H4 - Publicly Provided Goods/H.H4.H41 - Public Goods I - Health, Education, and Welfare/I.I1 - Health/I.I1.I18 - Government Policy • Regulation • Public Health Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q51 - Valuation of Environmental EffectsSujets proches
Duties Fee system (Taxation) Taxation, Incidence of Tax reform Tax policy TaxesCiter ce document
Nicolas Treich et al., « Public safety under imperfect taxation », HAL-SHS : économie et finance, ID : 10.1016/j.jeem.2021.102421
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Résumé
Standard benefit-cost analysis often ignores distortions caused by taxation and the heterogeneity of taxpayers. In this paper, we theoretically and numerically explore the effect of imperfect taxation on the public provision of mortality risk reductions (or public safety). We show that this effect critically depends on the source of imperfection as well as on the individual utility and survival probability functions. Our simulations based on the calibration of distributional weights and applied to the COVID-19 example suggest that the value per statistical life, and in turn the optimal level of public safety, should be adjusted downwards because of imperfect taxation. However, we also identify circumstances under which this result is reversed, so that imperfect taxation cannot generically justify less public safety.