Optimal transfer policies
AbstractThis paper discusses the role of transfers in a non-cooperative environment. If reselling in-kind-transfers involves some retrading costs, in-kind transfers are supposed to realise at least some of the mutual bargaining gains which would be left unexploited by mere use of monetary payments. These retrading costs bias the recipient's consumption plans in favour of the donor. However, the paper shows that non-enforceability alone does not support the exclusive application of inkind transfers in general because income effects can leave some scope for monetary transfers. The results of the model are discussed for some applications.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 702.
Date of creation: 1995
Date of revision:
In-kind transfers; monetary transfers; optimal policies;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- H40 - Public Economics - - Publicly Provided Goods - - - General
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- Neil Bruce & Michael Waldman, 1988.
"Transfers in Kind: Why They Can Be Efficient and Non-Paternalistic,"
UCLA Economics Working Papers
532, UCLA Department of Economics.
- Bruce, Neil & Waldman, Michael, 1991. "Transfers in Kind: Why They Can Be Efficient and Nonpaternalistic," American Economic Review, American Economic Association, vol. 81(5), pages 1345-51, December.
- Garfinkel, Irwin, 1973. "Is In-Kind Redistribution Efficient?," The Quarterly Journal of Economics, MIT Press, vol. 87(2), pages 320-30, May.
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