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...

In this note we explore in detail the importance of, and problems associated with, correcting for variance differences between data sets obtained from hypothetical and real referenda. We show that a previous discussion in the literature rests on a problematic estimation of the relative scale...