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State-Variable Publ...
State-Variable Public Goods and Social Comparisons over Time
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Aronsson, Thomas (author)
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- Johansson-Stenman, Olof, 1966 (author)
- Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit
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(creator_code:org_t)
- Göteborg : University of Gothenburg, 2013
- English.
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Series: Working Papers in Economics (online), 1403-2465 ; 555
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https://gup.ub.gu.se...
Abstract
Subject headings
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- The optimal provision of a state-variable public good, where the global climate is the prime example, is analyzed in a model where people care about their relative consumption. We consider both keeping-up-with-the-Joneses preferences (where people compare their own current consumption with others’ current consumption) and catching-up-with-the-Joneses preferences (where people compare their own current consumption with others’ past consumption) in an economy with two productivity types, overlapping generations and optimal nonlinear income taxation. The extent to which the conventional rules for public provision ought to be modified is shown to depend on the strength of such relative concerns, but also on the preference elicitation format.
Subject headings
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
Keyword
- State variable public goods
- asymmetric information
- relative consumption
- status
- positional preferences
- climate policy
Publication and Content Type
- vet (subject category)
- rap (subject category)
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