Optimal paternalistic health and human capital policies

We study optimal human and health linear policies when there is a paternalistic motive to overcome present bias problems of agents with heterogeneous cognitive skills. The paternalistic intervention rewards individuals for physical capital accumulation and the combined e ect of health and human capi...

Descripción completa

Detalles Bibliográficos
Autores: Arbex, Marcelo Aarestru, Mattos, Enlinson
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2018
País:Brasil
Institución:Fundação Getulio Vargas (FGV)
Repositorio:Repositório Institucional do FGV (FGV Repositório Digital)
Idioma:inglés
OAI Identifier:oai:repositorio.fgv.br:10438/20173
Acceso en línea:http://hdl.handle.net/10438/20173
Access Level:acceso abierto
Palabra clave:Paternalism
Optimal taxation
Education
Health
Economia
Economia - Modelos matemáticos
Capital humano
Saúde
Impostos
Descripción
Sumario:We study optimal human and health linear policies when there is a paternalistic motive to overcome present bias problems of agents with heterogeneous cognitive skills. The paternalistic intervention rewards individuals for physical capital accumulation and the combined e ect of health and human capital on future earnings. Our results highlight a novel e ect of paternalistic policies due to the interaction between present-biased preferences and cognitive skills. We illustrate numerically that this policy package is the most e ective and we analyze the relevance of agent's cognitive skills and present-biased preferences for the determination of rst-best and constrained rst-best optimal policies.