Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 811: Public Goods and Optimal Paternalism under Present-Biased Preferences

Thomas Aronsson () and David Granlund ()
Additional contact information
Thomas Aronsson: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
David Granlund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

Abstract: This paper deals with the optimal provision of a state-variable public good in a two-type model, when the consumers have present-biased preferences due to quasi-hyperbolic discounting. The results show that the preference for immediate gratification facing the (mimicking) high-ability type weakens the incentive to adjust the public provision in response to the self-selection constraint.

Keywords: Public Goods; Quasi-Hyperbolic Discounting; Redistribution; Asymmetric Information

JEL-codes: D03; D61; H41

7 pages, June 21, 2010

Full text files 

DownloadAsset.action...Id=3&assetKey=ues811 PDF-file

Download statistics

Questions (including download problems) about the papers in this series should be directed to David Skog ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:13:52.