@article{ref1,
title="Mad cows, terrorism and junk food: should public policy reflect perceived or objective risks?",
journal="Journal of health economics",
year="2008",
author="Johansson-Stenman, Olof",
volume="27",
number="2",
pages="234-248",
abstract="Empirical evidence suggests that people's risk-perceptions are often systematically biased. This paper develops a simple framework to analyse public policy when this is the case. Expected utility (well-being) is shown to depend on both objective and perceived risks (beliefs). The latter are important because of the fear associated with the risk and as a basis for corrective taxation and second-best adjustments. Optimality rules for public provision of risk-reducing investments, &quot;internality-correcting&quot; taxation (e.g. fat taxes) and provision of costly information to reduce people's risk-perception bias are presented.<p /> <p>Language: en</p>",
language="en",
issn="0167-6296",
doi="10.1016/j.jhealeco.2007.04.004",
url="http://dx.doi.org/10.1016/j.jhealeco.2007.04.004"
}