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State-variable public goods when relative consumption matters: a dynamic optimal taxation approach
Umeå universitet, Samhällsvetenskapliga fakulteten, Institutionen för nationalekonomi.
2011 (engelsk)Rapport (Annet vitenskapelig)
Abstract [en]

This paper concerns the optimal provision of a state-variable public good, where the global climate is the prime example. The analysis is based on a two-type optimal income tax model with overlapping generations, where people care about their relative consumption. We consider both keeping-up-with-the-Joneses preferences (where people compare their own current consumption with others’ current consumption) and catching-up-with-the-Joneses preferences (where people compare their own current consumption with others’ past consumption). The extent to which the rule for public provision ought to be modified is shown to depend crucially on the preference elicitation format.

sted, utgiver, år, opplag, sider
2011. , s. 44
Serie
Umeå economic studies, ISSN 0348-1018 ; 828
Emneord [en]
State variable public goods, asymmetric information, relative consumption, status, positional preferences, climate policy
HSV kategori
Forskningsprogram
nationalekonomi
Identifikatorer
URN: urn:nbn:se:umu:diva-47545OAI: oai:DiVA.org:umu-47545DiVA, id: diva2:442905
Tilgjengelig fra: 2011-09-22 Laget: 2011-09-22 Sist oppdatert: 2018-06-08bibliografisk kontrollert

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