Lorenz Kueng, Evgeny Yakovlev, Wednesday, September 10, 2014 - 00:00
Joan Costa-i-Font, Monday, June 30, 2014 - 00:00
Addicts may not respond to price incentives as we would expect. This problem, combined with the fear of disproportionally taxing the poor, makes it difficult to address the consumption externalities caused by addictive substances. This column reviews recent literature showing the efficacy of minimum pricing on alcohol, and the curious result that alcohol consumption now seems to be increasing in household income.