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This paper shows that the public provision of private goods may be justified on pure efficiency grounds in an environment where individuals have relative consumption concerns. By providing private goods, governments directly intervene in the consumption structure, and thereby have an instrument...
Persistent link: https://www.econbiz.de/10011619899
This paper shows that the public provision of private goods may be justified on pure efficiency grounds in an environment where individuals have relative consumption concerns. By providing private goods, governments directly intervene in the consumption structure, and thereby have an instrument...
Persistent link: https://www.econbiz.de/10011626732
The author reviews recent studies that investigate how social status concerns influence individual preferences for … concerns are defined and the different formalizations of the notion of social status that the authors provide. …
Persistent link: https://www.econbiz.de/10011892338
The author reviews recent studies of how social status concerns influence individual preferences for redistribution and … defined and the different formalizations of the notion of social status that the authors provide. …
Persistent link: https://www.econbiz.de/10011816453
Government may provide a good that can, if legally permitted, be supplemented by private purchases. Policy is determined by majority rule. Under standard assumptions on preferences, a majority voting equilibrium exists. A regime of positive government provision with no restriction on private...
Persistent link: https://www.econbiz.de/10014112021
A strong case for public provision of certain private goods has been established for an economy in which individuals have homogeneous preferences but differ in skill levels. There has been a critique of this model/mechanism arguing that heterogeneous preferences at a given skill level would...
Persistent link: https://www.econbiz.de/10011507888
This paper analyzes optimal taxation of charitable giving to a public good in a Mirrleesian framework with social comparisons. Leisure separability together with zero transaction costs of giving imply that charitable giving should be subsidized to such an extent that governmental contributions...
Persistent link: https://www.econbiz.de/10013221442
others. Theoretical literature has proven that these status effects imply a more egalitarian income policy than in the … conclusion in three ways. First, this policy implication holds if low income groups are sensitive to status, but not if high … income groups are predominantly so. Neither do status effects provide an economic rational for egalitarian income policy if …
Persistent link: https://www.econbiz.de/10013139831
Relative consumption effects or status concerns that feature jealousy (in the sense of Dupor and Liu, AER 2003) boost … consumption expenditure. If consumption is financed by labour income, such status considerations increase labour supply and, hence …
Persistent link: https://www.econbiz.de/10013087722
Relative consumption effects or status concerns that feature jealousy (in the sense of Dupor and Liu, AER 2003) boost … consumption expenditure. If consumption is financed by labour income, such status considerations increase labour supply and, hence …
Persistent link: https://www.econbiz.de/10009697670