According to the prior literature, in a Ramsey model, consumption externalities have no impact on steady state behavior, once labor supply is exogenous. In contrast, this paper argues that -- in the presence of technical change -- consumption externalities always affect steady state behavior,...

Welfare economics relies on consequentialism even though many philosophers have questioned this assumption. Survey evidence, based on a representative sample in Sweden, is presented here suggesting that most people’s ethical perceptions are consistent with consequentialism.

This paper concerns the policy implications of a potential self-control problem underlying the consumption of unhealthy food. Our results show that subsidies on wealth and health capital can be used to implement a socially optimal resource allocation.

This paper concerns the provision of a state-variable public good in a two-type model under present-biased consumer preferences. The preference for immediate gratification facing the high-ability type weakens the incentive to adjust public provision in response to the self-selection constraint.

This paper concerns optimal taxation and outsourcing. If the government has a direct instrument for taxing outsourcing, the policy rules for marginal income taxation remain as in the standard model. Otherwise, outsourcing contributes to a more progressive income tax structure.