We analyze individuals with heterogeneous time-inconsistent preferences that consume sin goods and make a savings decision. A government may tax the sin good and provide mandatory health insurance. Due to time-inconsistency, the individual sin good and savings choices in ict internalities. Due...

Many empirical studies on intertemporal choice report preference reversals in the sense that a preference between a small reward to be received soon and a larger reward to be received later reverses as both rewards are equally delayed. Such preference reversals are commonly interpreted as...

The anticipation of bad future events reduces currently experienced happiness and it may through this channel elicit detrimental behavioral responses. We explore this idea in the context of endogenous health and aging. We integrate physiological aging into a life-cycle model, calibrate it with...

This paper develops a bio-economic Malthusian growth model. By integrating recent research on allometric scaling, energy consumption, and ontogenetic growth we provide a model where subsistence consumption is endogenously linked to body mass and fertility. The theory admits a two-dimensional...

We develop a theoretical model that jointly explains optimal choices and happiness. We work with constant elasticity of substitution functions for utility and happiness. Employing a choice framework, individuals are confronted with two options. When there exists a trade-off, we determine...

Labels signaling sustainable product attributes are gaining importance, although uncertainty concerning the environmental, micro- and macroeconomic benefits of such labels persist. One of the questions still incom-pletely answered is whether Willingness To Pay (WTP) varies with a gradually...

Development projects focusing mainly on the supply side of infrastructure repeatedly turn out to yield poor impact when being rigorously evaluated. This is also the case for an intervention connecting urban households in Yemen to piped water and improved sewerage networks. This study...

In 2001, the voluntary additional Riester pension scheme was implemented in Germany. Financial subsidies should incentivize people to increase their private pension savings. In this paper, we hypothesize that these publicly subsidized savings mainly replace existing not subsidized savings and...