IDEAS home Printed from https://ideas.repec.org/a/bla/jpbect/v8y2006i3p357-377.html
   My bibliography  Save this article

The Marginal Costs and Benefits of Redistributing Income and the Willingness to Pay for Status

Author

Listed:
  • SAM ALLGOOD

Abstract

The effect of status on aggregate welfare is ambiguous for marginal reforms that redistribute income. If average consumption falls, the change in relative consumption increases household utility but reinforces the decrease in household labor supply, raising welfare cost. For parameterizations of the model developed here, reforms which lower average consumption increase aggregate welfare. Numerical calculations show that status increases marginal welfare cost and marginal net benefit for a demogrant reform. Redistributing to high income households may increase aggregate welfare depending on the definition of average consumption and if the willingness to pay for status increases with income.

Suggested Citation

  • Sam Allgood, 2006. "The Marginal Costs and Benefits of Redistributing Income and the Willingness to Pay for Status," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(3), pages 357-377, August.
  • Handle: RePEc:bla:jpbect:v:8:y:2006:i:3:p:357-377
    DOI: 10.1111/j.1467-9779.2006.00268.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9779.2006.00268.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1467-9779.2006.00268.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Catherine C. Eckel & Enrique Fatas & Rick Wilson, 2010. "Cooperation and Status in Organizations," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(4), pages 737-762, August.
    2. David A. Weisbach, 2008. "What Does Happiness Research Tell Us About Taxation?," The Journal of Legal Studies, University of Chicago Press, vol. 37(S2), pages 293-324, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jpbect:v:8:y:2006:i:3:p:357-377. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/apettea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.