Purpose: This study examines the entrepreneurial transformation within kibbutzim (organizations historically rooted in collectivist ideals) as they adapt to economic and cultural shifts. Positioned as unique socioeconomic models, kibbutzim provide a compelling context for understanding social...

We propose a method for cost-benefit analysis of public policies that identifies potential Pareto improvements when losers from a reform are compensated through income tax changes. Reforms are desirable when they decrease aggregate excess burden in commodity and labor markets. This condition is...

This study explores the way in which social information about giving impacts the stability of distributional preferences. We designed a two-stage treatment which varied the information participants received about the maximum amounts given to recipients. Information on maximum giving can...

In welfare economics, the theory of second best is inextricably linked to an article by Richard George Lipsey and Kelvin John Lancaster, published in 1956 in the Review of Economic Studies. The publication of this article was encouraged by Harry Gordon Johnson, who was a member of the journal's...

Why is in-kind aid a prominent feature of welfare systems? We present a lab-in-the-field experiment involving members of the general U.S. population and SNAP recipients. After documenting a widespread desire to limit recipients’ choices, we quantify the relative importance of (i) welfarist...

This paper contrasts two kinds of political economy, represented by welfare economics and social choice theory on the one hand and James M. Buchanan's constitutional political economy on the other hand. It posits that the difference between the two kinds has its roots in the different normative...

This paper proposes a conceptual model of decision-making tying specific preferences to broader individual goals. In particular, the model considers two hierarchically ordered types of goals: Terminal goals, which represent fundamental objectives (e.g., health, social connection, etc.), and...

This report estimates the "social rate of time preference" (SRTP) for New Zealand public policy appraisal using a Ramsey equation. It uses the Weitzman (1998) method to derive a declining discount rate schedule of 2% (real) for years 1-30, 1.5% for years 31-100, and 1% for years 101 on. The...

We reappraise the Arrow problem by studying the aggregation of choice functions. We do so in the general framework of judgment aggregation, in which choice functions are naturally representable by specifying, for each menu A and each alternative x in A, whether x is choosable from A, or not. Our...

This paper examines paternalistic preferences in large-scale experiments in the U.S. Participants decide whether to intervene to prevent a stakeholder, mistaken about their options, to make a choice that is misaligned with their preferences. We find that the willingness to intervene strongly...

Die Vorstellung, dass eine Marktwirtschaft nur dann zu sozial oder ökologisch verträglichen Ergebnissen führen kann, wenn der Staat sie entsprechend reguliert, beruht auf dem elementaren Missverständnis, dass ökonomische Effizienz und soziale Gerechtigkeit grundsätzlich Gegensätze sind....

Deutschland ist eine stabile Demokratie und ein sicherer Rechtsstaat. Dazu leben wir, auf der Grundlage der Sozialen Marktwirtschaft, in einem der wohlhabendsten Länder der Erde. Diese Prosperität kommt breiten Schichten zugute, sorgt für ein hohes Maß an sozialem Frieden und ermöglicht...

Die Vorstellung, dass eine Marktwirtschaft nur dann zu sozial oder ökologisch verträglichen Ergebnissen führen kann, wenn der Staat sie entsprechend reguliert, beruht auf dem elementaren Missverständnis, dass ökonomische Effizienz und soziale Gerechtigkeit grundsätzlich Gegensätze sind....

How strong are peer effects on the beliefs and spending decisions of individuals? We use a randomized control study in which treated households are told about either average income or debt of individuals like them to assess how peer effects influence their beliefs and spending. The information...

We study how experts influence consumer behavior and welfare by focusing on the Booker Prize. Leveraging the discontinuity created by the attribution of the prize, we show that readers receive the signal sent by the jury of the Booker and are persuaded to buy the awarded book but experience...

There is no consensus on how to measure social welfare and inequality when households have different needs. As we show, a dilemma emerges between holding households responsible for their needs or compensating them. This dilemma is of first-order importance for social welfare, but generally plays...