This paper presents an approach for the estimation of welfare effects of tax policy changes under heterogeneity in consumer preferences. The approach is applied to evaluate the welfare effects of current tax advantages for electric vehicles supplied as fringe benefits by employers. Drawing on...

Limited memory capacity, retrieval constraints and anchoring are central to expectation formation processes. We develop a model of adaptive expectations where individuals are able to store only a finite number of past experiences of a stochastic state variable. Retrieval of these experiences is...

Cost-Benefit Analysis (CBA) for public policies assumes 'consumer sovereignty', implying that impacts of government projects can be valued by aggregating individuals' private willingness to pay. However, individuals' private willingness to pay might not reflect their preferences towards public...

This paper investigates how social interactions impact the decision to participate in one’s local environment. Existing work often reports correlations between social interactions and local participation, but it is unclear what the causal direction of this relationship is. A key contribution...

Cost-Benefit Analysis (CBA) is a widely applied economic appraisal tool to support the planning and decision-making process for transport projects. In a CBA, impacts of government projects are made comparable by converting them into monetary units using the number of euros individuals are...