Exogenous Preferences, and Endogenous Tastes
Abstracthis paper presents a unifying approach to modelling endogenous tastes. Tastes are defined as orderings of a subspace of a (suitable chosen) commodity space. Using this definition endogenous tastes are analytically similar to externalities. Accordingly, many models in economic theory can be interpreted as dealing with endogenous tastes. It is shown that changes in tastes have a direct and an indirect impact on welfare. The literature on externalities usually focuses on the direct effect while the literature on endogenous tastes mainly deals with the indirect effect. The analysis focuses on two main aspects of variable tastes: the institutional question (who influences tastes) and the technological question (what does it cost). The allocative inefficiency of an economic system with endogenous tastes is demonstrated and Pigouvian-type corrective taxes are discussed. The unifying framework presented in this paper can be used to analyze and discuss a wide variety of variable tastes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 222 (2002)
Issue (Month): 5 ()
Contact details of provider:
Postal: Licher Straße 74, 35394 Gießen
Phone: +49 (0)641 99 22 001
Fax: +49 (0)641 99 22 009
Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
More information through EDIRC
Variable or endogenous tastes/preferences; commodity space; externalities;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D60 - Microeconomics - - Welfare Economics - - - General
- D62 - Microeconomics - - Welfare Economics - - - Externalities
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Winker).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.