Present-Biased Individuals, Optimal Paternalism, and Transfers in Kind

Arbeitspapier

Present-biased preferences cause distortions in consumption that can motivate the use of paternalistic in-kind transfers. Empirically, goods are consumed to different degrees when consumption outlay changes. Economists distinguish between necessary goods and luxury goods. A present-biased individual has an intertemporal distortion of consumption toward the present, which in turn distorts present consumption toward luxury goods. In-kind transfers of necessary goods, such as food stamps, can alleviate the intertemporal distortion and make present-biased transfer recipients better off. Further, transfers in kind are asymmetrical in the sense that they can target present-biased recipients without affecting fully rational recipients.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: EPRU Working Paper Series ; No. 2005-11

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Publicly Provided Private Goods ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
• Thema: in-kind transfers ; time preference ; Zeitpräferenz ; Konsum ; Güter ; Öffentliche Güter ; Ernährungspolitik ; Wohlfahrtstheorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Winther Hansen, Jes
• Ereignis: Veröffentlichung
• (wer): University of Copenhagen, Economic Policy Research Unit (EPRU)
• (wo): Copenhagen
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/82057
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ