IDEAS home Printed from https://ideas.repec.org/p/hhs/umnees/0811.html
   My bibliography  Save this paper

Public Goods and Optimal Paternalism under Present-Biased Preferences

Author

Listed:
  • Aronsson, Thomas

    (Department of Economics, Umeå University)

  • Granlund, David

    (Department of Economics, Umeå University)

Abstract

This paper deals with the optimal provision of a state-variable public good in a two-type model, when the consumers have present-biased preferences due to quasi-hyperbolic discounting. The results show that the preference for immediate gratification facing the (mimicking) high-ability type weakens the incentive to adjust the public provision in response to the self-selection constraint.

Suggested Citation

  • Aronsson, Thomas & Granlund, David, 2010. "Public Goods and Optimal Paternalism under Present-Biased Preferences," Umeå Economic Studies 811, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0811
    as

    Download full text from publisher

    File URL: http://www.econ.umu.se/DownloadAsset.action?contentId=134981&languageId=3&assetKey=ues811
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Public Goods; Quasi-Hyperbolic Discounting; Redistribution; Asymmetric Information;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hhs:umnees:0811. 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: David Skog (email available below). General contact details of provider: https://edirc.repec.org/data/inumuse.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.