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Aronsson, Thomas
Publications (10 of 105) Show all publications
Aronsson, T. & Schöb, R. (2018). Climate change and psychological adaptation: A behavioral environmental economics approach. Journal of Behavioral and Experimental Economics, 74, 79-84
Open this publication in new window or tab >>Climate change and psychological adaptation: A behavioral environmental economics approach
2018 (English)In: Journal of Behavioral and Experimental Economics, ISSN 2214-8043, E-ISSN 2214-8051, Vol. 74, p. 79-84Article in journal (Refereed) Published
Abstract [en]

Economic models of climate policy (or policies to combat other environmental problems) typically neglect psychological adaptation to changing life circumstances. People may adapt, to different degrees, to a deteriorated environment. The present paper addresses these issues in a model of optimal tax policy to combat climate change and discusses the consequences for optimal climate policies. Furthermore, from a normative-methodological point of view, we argue that psychological adaptation needs to be taken into account even by a pure welfarist policy maker, who aims at internalizing an intertemporal externality.

Place, publisher, year, edition, pages
Elsevier, 2018
Keywords
Behavioral environmental economics, Climate change, Intertemporal externalities, Adaptation, Taxation
National Category
Economics
Identifiers
urn:nbn:se:umu:diva-148716 (URN)10.1016/j.socec.2018.03.005 (DOI)000432773100009 ()2-s2.0-85044940129 (Scopus ID)
Funder
Swedish Research Council, 421-2010-1420
Available from: 2018-06-25 Created: 2018-06-25 Last updated: 2018-06-25Bibliographically approved
Aronsson, T., Backlund, K. & Löfgren, K.-G. (2018). Environmental policy, sustainability, and welfare: an economic analysis. Edward Elgar Publishing
Open this publication in new window or tab >>Environmental policy, sustainability, and welfare: an economic analysis
2018 (English)Book (Refereed)
Place, publisher, year, edition, pages
Edward Elgar Publishing, 2018. p. 189
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-145729 (URN)978-1-78195-510-9 (ISBN)978-1-78195-511-6 (ISBN)978-1-78195-512-3 (ISBN)
Available from: 2018-03-15 Created: 2018-03-15 Last updated: 2018-06-09Bibliographically approved
Aronsson, T. & Johansson-Stenman, O. (2018). Paternalism against Veblen: Optimal Taxation and Non-respected Preferences for Social Comparisons. American Economic Journal: Economic Policy, 10(1), 39-76
Open this publication in new window or tab >>Paternalism against Veblen: Optimal Taxation and Non-respected Preferences for Social Comparisons
2018 (English)In: American Economic Journal: Economic Policy, ISSN 1945-7731, E-ISSN 1945-774X, Vol. 10, no 1, p. 39-76Article in journal (Refereed) Published
Abstract [en]

This paper compares optimal nonlinear income tax policies of welfarist and paternalist governments, where the latter does not respect individual preferences regarding relative consumption. Consistent with previous findings, relative consumption concerns typically induce a welfarist government to increase the marginal tax rates to internalize positional externalities. Remarkably, the optimal marginal tax rules are often very similar in the paternalist case, where such externalities are not taken into account. We identify several cases where the marginal tax rules are indeed identical between the governments. Numerical simulations show that marginal and average tax levels and the overall redistribution are often also similar.

National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-132964 (URN)10.1257/pol.20150369 (DOI)000424292800002 ()
Funder
Swedish Research Council, 2016-02371
Available from: 2017-03-27 Created: 2017-03-27 Last updated: 2018-06-09Bibliographically approved
Aronsson, T. & Blomquist, S. (2018). Uncertain Length of Life, Retirement Age, and Optimal Pension Design.
Open this publication in new window or tab >>Uncertain Length of Life, Retirement Age, and Optimal Pension Design
2018 (English)Report (Other academic)
Series
Umeå economic studies, ISSN 0348-1018 ; 957
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-145736 (URN)
Available from: 2018-03-15 Created: 2018-03-15 Last updated: 2018-06-09
Aronsson, T. & Schöb, R. (2017). Consumption adaptation, anticipation-bias, and optimal income taxation. Journal of Public Economic Theory, 19(3), 713-731
Open this publication in new window or tab >>Consumption adaptation, anticipation-bias, and optimal income taxation
2017 (English)In: Journal of Public Economic Theory, ISSN 1097-3923, E-ISSN 1467-9779, Vol. 19, no 3, p. 713-731Article in journal (Refereed) Published
Abstract [en]

Adaptation is omnipresent but people systematically fail to correctly anticipate the degree to which they adapt, leading them to make irrational intertemporal decisions. This paper concerns optimal income taxation to correct for such anticipation-biases in a framework where consumers adapt to earlier consumption levels. The analysis is based on a general equilibrium OLG model with endogenous labor supply and savings where each consumer lives for three periods. The results show how a paternalistic government may correct for the effects of anticipation-bias through a combination of time-variant-marginal labor income taxes and savings subsidies/taxes. The optimal policy mix remains the same, irrespective of whether consumers commit to their original life time plan for work hours and consumption or reoptimize later on when realizing that they have already adapted more than expected.

Place, publisher, year, edition, pages
Hoboken: Wiley-Blackwell, 2017
Keywords
optimal paternalism, relative income, public goods, sin taxes, utility, happiness, economists, disability, provision, jealousy
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-124570 (URN)10.1111/jpet.12227 (DOI)000404443300008 ()
Funder
Riksbankens Jubileumsfond, RS10-1319:1
Available from: 2016-08-16 Created: 2016-08-16 Last updated: 2018-06-07Bibliographically approved
Aronsson, T. & Granlund, D. (2017). Federal subsidization of state expenditure to reduce political budget cycles. International Tax and Public Finance, 24(3), 536-545
Open this publication in new window or tab >>Federal subsidization of state expenditure to reduce political budget cycles
2017 (English)In: International Tax and Public Finance, ISSN 0927-5940, E-ISSN 1573-6970, Vol. 24, no 3, p. 536-545Article in journal (Refereed) Published
Abstract [en]

In this note, we analyze whether a federal transfer system can be designed to increase welfare when state governments create political budget cycles. The results show how the federal government can counteract the welfare costs of these cycles, without hindering politicians from signaling their type, by announcing a transfer scheme to subsidize expenditures that voters do not consider when voting.

Place, publisher, year, edition, pages
Dordrecht: Springer, 2017
Keywords
Political economy, Intergovernmental transfer, Budget cycle
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-120775 (URN)10.1007/s10797-016-9404-5 (DOI)000400197100008 ()
Funder
Riksbankens Jubileumsfond, RS10-1319:1
Available from: 2016-05-20 Created: 2016-05-20 Last updated: 2018-06-07Bibliographically approved
Aronsson, T. & Johansson-Stenman, O. (2017). Genuine saving and positional externalities. International Economic Review, 58(4), 1155-1190
Open this publication in new window or tab >>Genuine saving and positional externalities
2017 (English)In: International Economic Review, ISSN 0020-6598, E-ISSN 1468-2354, Vol. 58, no 4, p. 1155-1190Article in journal (Refereed) Published
Abstract [en]

Much evidence suggests that people are concerned with their relative consumption. Yet, positional externalities have so far been ignored in savings-based indicators of sustainable development. This article examines the implications of relative consumption concerns for measures of sustainable development by deriving analogues to genuine saving when people are concerned with their relative consumption. Unless the positional externalities have been internalized, an indicator of such externalities must be added to genuine saving to arrive at the proper measure of welfare change. We also show how relative consumption concerns affect the way public investment ought to be reflected in genuine saving.

Place, publisher, year, edition, pages
John Wiley & Sons, 2017
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-124567 (URN)10.1111/iere.12248 (DOI)000416331700004 ()
Funder
Swedish Research Council, 421-2010-1420
Available from: 2016-08-16 Created: 2016-08-16 Last updated: 2018-06-07Bibliographically approved
Aronsson, T. & Schöb, R. (2017). Habit Formation and the Pareto-Efficient Provision of Public Goods.
Open this publication in new window or tab >>Habit Formation and the Pareto-Efficient Provision of Public Goods
2017 (English)Report (Other academic)
Series
Umeå economic studies, ISSN 0348-1018 ; 944
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-145730 (URN)
Available from: 2018-03-15 Created: 2018-03-15 Last updated: 2018-06-09
Aronsson, T. & Micheletto, L. (2017). Optimal Redistributive Income Taxation and Efficiency Wages.
Open this publication in new window or tab >>Optimal Redistributive Income Taxation and Efficiency Wages
2017 (English)Report (Other academic)
Series
Umeå economic studies, ISSN 0348-1018 ; 953
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-145734 (URN)
Available from: 2018-03-15 Created: 2018-03-15 Last updated: 2018-06-09
Aronsson, T. & Sjögren, T. (2017). Optimal Taxation, Redistribution, and Environmental Externalities.
Open this publication in new window or tab >>Optimal Taxation, Redistribution, and Environmental Externalities
2017 (English)Report (Other academic)
Series
Umeå economic studies, ISSN 0348-1018 ; 950
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-145731 (URN)
Available from: 2018-03-15 Created: 2018-03-15 Last updated: 2018-06-09
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