Arbeitspapier
Image Concerns and the Political Economy of Publicly Provided Private Goods
Governments often provide their citizens with goods and services that are also supplied in markets: education, housing, nutritional assistance, etc. We analyze the political economy of the public provision of private goods when individuals care about their social image. We show that image concerns motivate richer individuals to vote for the public provision of goods they themselves buy in markets, the reason being that a higher provision level attracts more individuals to the public system, enhancing the social exclusivity of market purchases. In effect, majority voting may lead to a public provision that only a minority of citizens use. Users in the public system may enjoy better provision than users in the private system. We characterize the coalitions that can prevail in a political equilibrium.
- Language
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Englisch
- Bibliographic citation
-
Series: Discussion Paper ; No. 9
- Classification
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Wirtschaft
Publicly Provided Private Goods
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- Subject
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In-kind provision
status preferences
majority voting
- Event
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Geistige Schöpfung
- (who)
-
König, Tobias
Lausen, Tobias
Wagener, Andreas
- Event
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Veröffentlichung
- (who)
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Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
- (where)
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München und Berlin
- (when)
-
2017
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- König, Tobias
- Lausen, Tobias
- Wagener, Andreas
- Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
Time of origin
- 2017
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Social Status Concerns and the Political Economy of Publicly Provided Private Goods
Social status concerns and the political economy of publicly provided private goods
Social status concerns and the political economy of publicly provided private goods
Country size and publicly provided goods
The Political Economy of Publicly Provided Private Goods
Concerns for equity and the optimal co-payments for publicly provided health care
Publicly Provided Unemployment Insurance and Commitment
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