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Non-welfare economics and the well-being of phantom agents: an appeal to caution

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Author Info
Bart Capéau ()
Erwin Ooghe ()

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Abstract

Besley (1988) is one of the few exceptional articles containing non-welfarist optimal tax devices. Feehan(1990) reports an error in his first-best rules. The present note criticizes the fundamentals of Besley's second-best rules. These rules optimize the welfare or well-being of phantom agents rather than the corrected welfare of real existing agents in society.

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File URL: http://www.econ.kuleuven.ac.be/ew/academic/econover/Papers/wpphnag.pdf
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Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics in its series Public Economics Working Paper Series with number wpphnag.

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Length: 13 pp.
Date of creation: 2001
Date of revision:
Publication status: Published in abbreviated form under the title "Merit goods and phantom agents" in Economics Bulletin, Vol. 8, No. 8, pp. 1-5.
Handle: RePEc:wpe:papers:wpphnag

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  1. Feehan, James P., 1990. "A simple model for merit good arguments : A comment," Journal of Public Economics, Elsevier, vol. 43(1), pages 127-129, October. [Downloadable!] (restricted)
  2. M. Fleurbaey & F. Maniquet, 1999. "Optimal income taxation : An ordinal approach," THEMA Working Papers 99-43, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
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This page was last updated on 2009-11-27.

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