Quasi-hyperbolic discounting and externalities: Can government intervention improve wefare?

Konferenzbeitrag

The recent literature has emphasized that government intervention when consumers have quasi-hyperbolic preferences ('bias for the present') over consumption is not welfare-enhancing. This paper introduces a market imperfection (which takes the form of a negative externality) and shows that government intervention is welfare-enhancing if the market imperfection is sufficiently strong or the consumers' bias for the present is weak. This conclusion holds, interestingly, even if the gocernment and the consumers share the same biased intertemporal preferences.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2020: Gender Economics

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Intertemporal Household Choice; Life Cycle Models and Saving
• Thema: Quasi-hyperbolic preferences ; optimal savings ; bias for the present ; time consistent policy ; externalities

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kotsogiannis, Christos ; Schwager, Robert
• Ereignis: Veröffentlichung
• (wer): ZBW - Leibniz Information Centre for Economics
• (wo): Kiel, Hamburg
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/224593
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ