slides19 - Health Externalities Addiction Advertising...

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Health Externalities Addiction Advertising Restrictions Excise Taxes Public Health Initiatives Angela Fertig Spring 2010 Angela Fertig Public Health Initiatives
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Health Externalities Addiction Advertising Restrictions Excise Taxes Health Externalities People have a lot of unhealthy behaviors. The government should intervene if these behaviors cause negative externalities. I contagion – for serious diseases that are spread by water, etc., need public interventions because people won’t take enough precautions for society I alcohol – drunk driving, fetal alcohol syndrome, spouse and child abuse, crimes of violence, health care programs like liver transplantation, govt provision of mental illness related to alcohol consumption I tobacco – irritation, secondhand smoke, birth outcomes of smokers, govt provision of health care for lung cancer I obesity – higher health care costs on average so higher premiums on average, lost productivity due to illness Angela Fertig Public Health Initiatives
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Health Externalities Addiction Advertising Restrictions Excise Taxes Addiction I To best inform how we should intervene, we need to discuss why people do the things they do. I Why do people smoke and drink? I If it is because they’re addicted, do we have an obligation to intervene? I Let’s discuss 3 theories of addiction and their policy implications. Angela Fertig Public Health Initiatives
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Health Externalities Addiction Advertising Restrictions Excise Taxes Rational addiction model I addiction is when consuming a product now makes you enjoy it even more in the future I when you choose to consume an addictive substance, you are
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