In a model with heterogeneous workers and both intensive and extensive margins of employment, we consider two systems of redistribution: a universal basic income, and a categorical unemployment benefit. Well-being depends on own-consumption relative to average employed workers' consumption, and...

Does it make us unhappier when we compare our current consumption with that of the Joneses or our own past achievements? This paper tries an answer without recurring on interpersonal utility comparisons. It calibrates an economy under three different assumptions, non-comparing utility, and...

This contribution provides a game theoretical derivation of market demand as a function of the level and distribution of income in the considered economy: if (i) the price is low, everyone buys the good; if (ii ) the price is high, only the rich buy the good (a status good in a narrow sense). If...

This paper analyses monopolistic third-degree price discrimination in the presence of consumption externalities within two separate markets. Assuming linear inverse demands, we investigate an associated change in social welfare (the sum of the consumers' surpluses and the producer's profit) with...

Most dynamic models of congestion pricing use fully time-variant tolls. However, in practice, tolls are uniform over the day or at most have a few steps. Such uniform and step tolls have received surprisingly little attention from the literature. Moreover, most models that do study them assume...

We analyze the effects of a generalized class of negative consumption externalities (asymmetric and non-atmospheric) on the structure of efficient commodity tax programs. Households are not only concerned about consumption reference levels --- that is, they gain utility from "keeping up with the...