Scandinavian Working Papers in Economics

HUI Working Papers,
HUI Research

No 38: Public Goods and Optimal Paternalism under Present-Biased Preferences

Thomas Aronsson and David Granlund ()
Additional contact information
Thomas Aronsson: Umeå University, Postal: Department of Economics, SE-901 87 Umeå, Sweden
David Granlund: The Swedish Retail Institute (HUI), Postal: Regeringsgatan 60, 103 29 Stockholm, Sweden, and Department of Economics, Umeå University, SE-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 1, 2010

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

Full text files

MediaBinaryLoader.ax...e_ForceDownload=true PDF-file 

Download statistics

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

This page generated on 2018-02-05 20:50:23.