We consider taxation by a utilitarian government in the presence of heterogeneous locations within a country. We show that a utilitarian government never equalizes after-tax incomes, even when it can impose group-specific lump-sum taxes. If migration is impossible, a utilitarian government may...

This paper develops a theory of consumer boycotts. Some consumers care not only about the products they buy but also about whether the firm behaves ethically. Other consumers do not care about the behavior of the firm but yet may like to give the impression of being ethical consumers....

This paper models a legislature in which the same agenda setter serves for two periods, showing how he can exploit a legislature (completely) in the first period by promising future benefits to legislators who support him. In equilibrium, a large majority of legislators vote for the first-period...

This paper proposes a screening approach to explain why dating is associated with purchasing status products and conspicuous gift giving. A potential bride searching for a husband may seek to screen candidates whose income is only partially observable. Taking into account that she also bears...

A rich person who fears a loss of income may later favor redistributive taxation and a mix of taxes and public goods that differs from the one he now favors. If mobility is costly, and if government in each period uses majority voting to determine policy, then this person may prefer to live in a...

A woman assessing the wealth of a potential husband may observe some, but not all, of his wealth. She may screen, leading to status consumption and wasteful gift giving. The screening activity is costly not only for the potential husband, but also for the woman, as it reduces the wealth of the...

Consider a principal who appoints an agent. Let the agent potentially serve for a sufficiently long time that one principal is replaced by another over this period. Suppose also that the quality of the agent appointed increases with the effort the incumbent principal devotes to hiring. Then the...

Consider a public project which produces a consumption good and which benefits future generations. Let a conventional cost-benefit analysis find that it gives higher benefits than projects it would dis-place in the private sector. Voters may nevertheless oppose the public project: the...

Reduced inequality in human capital may reduce appropriationfrom the rich. They may therefore favor policies such as incometransfers and mandatory schooling which equalize human capital.Comparing several such policies, we find that mandatory schooling leads to higher incomes for both the rich...