>Iâm not sure I follow the claim that if you assume that alcohol taxation merely shifts the tax burden, there arenât strong reasons to think the deadweight loss will be greater from alcohol taxation vs other forms of taxation. The subjective wellbeing study found that drinking increases peopleâs wellbeing by almost as much as spending time with friends. It seems unlikely to me that if the tax were instead eg on income that the benefits of the income would be as large as this. Intuitively, this seems off.
Interesting. That doesnât seem off to me. If Iâm understanding correctly, the implication of your view is that people would generally be better off if they consumed more alcohol and less of other goods on the margin. Is that right?
To put it another way: increasing taxes on alcohol has two effects on consumer surplus: (i) deadweight loss (ii) a transfer from consumers to the government. I think (ii) is probably positive. Almost all taxes involve some amount of deadweight loss, but we do them anyway because we think public goods and redistribution are worth it.
TBC, Iâm not claiming that higher excise taxes on alcohol relative to other goods merely shifts the tax burden. If we assume perfect rationality (which I believe would be mistaken), having unequal marginal taxes between goods does result in some additional deadweight loss. But it is a counterveiling factor.
>On your botec on the benefits of alcohol, a lot rides on you assuming that a death from alcohol accounts for 40 units of value
A unit of value (in GiveWellâs terms) is equivalent to doubling consumption for a person for a year. A DALY is 2.3 units of value. So you want to be dividing your estimates by 2.3.
The Global Burden of Disease estimates ~30 YLLs and ~10 YLDs per death (I didnât include YLDs in the BOTEC and I underestimated YLLs which makes it conservative, though I also didnât discount the GBD estimates for imperfect evidence quality and black market consumption not addressable through policy which makes it optimistic. Iâd guess these ~cancel).
Edit: didnât see your second comment when writing this where you saw this
>On the other hand, none of this considers hangovers.
Yeah, although interestingly (IIRC) the Baumberg study didnât find any effect on SWB the day after drinking (though Iâm skepticalâmaybe people didnât feel like inputting how sad they were on their phone when they were hungover!)
>Another thoughtâyou measure the effects of alcohol on subjective wellbeing as a fraction of someoneâs waking hours. This seems right from a subjective wellbeing perspective. But is that also the way you think about the value lost by a death? By consistency, you would also need to implicitly downweight the disvalue a death by a third for the time people spend asleep. Or do you already do that in your moral weights?
Oh thatâs interesting. Itâs been a while now since I did this, but I think I was implicitly doing that with this calc