We use cookies to ensure that we give you the best experience on our website. By continuing to browse this repository, you give consent for essential cookies to be used. You can read more about our Privacy and Cookie Policy.

Durham e-Theses
You are in:

The Economics of Public Policy and Endogenous Health

WANG, JIUNN (2019) The Economics of Public Policy and Endogenous Health. Doctoral thesis, Durham University.

PDF - Accepted Version


In this thesis, we explore the relationship between public policy and endogenous health in the economy from three aspects.

First, we explore the health effects underlying the implementation of taxes. Taxes on unhealthy commodities may fail in promoting health because the beneficial effects of reducing unhealthy consumption could be offset by the simultaneous decrease in health investment. However, when coupled with the revenue-neutral tax reforms where income taxes are adjusted, taxes on unhealthy commodities can improve both health and welfare more effectively.

Second, we take a non-paternalistic view to justify the role of sin taxes in terms of fiscal externalities. Although the Pigouvian element in optimal sin taxes decreases in the second-best setting, optimal sin taxes are not necessarily lower due to the presence of the efficiency element. Our calibration on the UK economy shows that the implementation of sin taxes have double-dividends which improve not only health but also economic performance as well as welfare.

Third, we explore the relationship between labor supply and public policy. Old-age labor supply increases with higher spending on health unless the additional spending is funded through taxes on old-age labor income. The economic impacts of changes in technologies are also examined. Furthermore, we find that the optimal tax scheme is determined by the coefficients of relative risk aversion.

Item Type:Thesis (Doctoral)
Award:Doctor of Philosophy
Keywords:Public policy, endogenous health, tax reform, health care, optimal taxation
Faculty and Department:Faculty of Social Sciences and Health > Economics, Finance and Business, School of
Thesis Date:2019
Copyright:Copyright of this thesis is held by the author
Deposited On:25 Apr 2019 12:56

Social bookmarking: del.icio.usConnoteaBibSonomyCiteULikeFacebookTwitter