whole tax system is affected by the externalities caused by the consumption of positional goods, notably also the taxes on …

individuals who cause it. For instance, urban fuel consumers generate greater pollution damages compared to rural consumers, but …

We study optimal corrective taxation in the alcohol market. Consumption generates negative externalities that are non … externalities, then varying tax rates on different products can lead to welfare gains. We study this problem in an optimal tax … externalities are amongst heavy drinkers. A sufficient statistics approach is informative about the direction of reform, but not …

among the heaviest drinkers – the group who, at the margin, are likely to create the largest externalities from drinking … price floor outperforms an ethanol tax. However, more flexible tax systems can achieve similar reductions in externalities …

externalities. Policy effectiveness depends on whether the measure achieves large reductions in the most socially costly consumption …

regulation. We illustrate our results in applications to financial regulation with environmental externalities, shadow banking …