Showing 1 - 10 of 38
Laboratory experiments are potentially effective tools for studying behavior in settings where little or no information would otherwise exist such as participation in illicit activities. However, using laboratory experiments to draw policy recommendations is highly debatable. We investigate the...
Persistent link: https://www.econbiz.de/10005651744
This paper concerns optimal income taxation under asymmetric information in a two-type overlapping generations model, where people care about their relative consumption compared to others. The appearance of positional concerns affects the policy choices via two channels: (i) the size of the...
Persistent link: https://www.econbiz.de/10005423953
Much evidence suggests that people are concerned with their relative consumption, i.e., their consumption in relation to the consumption of others. Yet, the social costs of conspicuous consumption have so far played little (or no) role in savings-based indicators of sustainable development. The...
Persistent link: https://www.econbiz.de/10010961525
This paper deals with optimal income taxation and relative consumption under a welfarist government that fully respects people’s preferences and a paternalist government that does not share the consumer preference for relative consumption. Consistent with previous findings, relative...
Persistent link: https://www.econbiz.de/10010961526
This paper analyzes optimal differential commodity taxation, together with optimal nonlinear income taxation, in order to deal with positional preferences. It also derives the optimal public provision of private goods both when differential commodity taxation is feasible and when it is not. It...
Persistent link: https://www.econbiz.de/10011019104
This paper derives Pareto efficient policy rules for the provision of national as well as global public goods in a two-country world, where each individual cares about relative consumption within as well as between countries. Furthermore, we compare these policy rules with those that follow from...
Persistent link: https://www.econbiz.de/10011019110
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...
Persistent link: https://www.econbiz.de/10011019117
Regional data on wages for the Spanish economy show that workers who live in developed regions earn more than workers in other regions. Literature on external economies provides a possible explanation of why firms do not move from these regions to others where wages are lower. Previous studies...
Persistent link: https://www.econbiz.de/10005022338
In the last decade, different studies have tried to contrast empirically the existence of a relationship between local human capital and the productivity of a given territory, and the possible presence of external economies. The most common result has been the finding of a positive relationship...
Persistent link: https://www.econbiz.de/10005022393
We examine the effect of addictive behavior on a socially optimal environmental tax. If utility in part depends on past consumption and individuals are time-consistent, the socially optimal environmental tax is shown to be equal to the conventional Pigovian tax. In a second-best world where the...
Persistent link: https://www.econbiz.de/10005651663