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Image concerns and the political economy of publicly provided private goods
[Arbeitspapier]
Körperschaftlicher Herausgeber
Wissenschaftszentrum Berlin für Sozialforschung gGmbH
Abstract 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 m... mehr
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 coalition structures across voters that can prevail in a political equilibrium.... weniger
Thesaurusschlagwörter
Mehrheitswahl; Sachleistung; politische Ökonomie; Image; Markt
Klassifikation
Wirtschaftssoziologie
Wirtschaftspolitik
Freie Schlagwörter
D63; D72; H42; Status preferences; [Dual provision] In-kind provision
Sprache Dokument
Englisch
Publikationsjahr
2016
Erscheinungsort
Berlin
Seitenangabe
40 S.
Schriftenreihe
Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und Entscheidung, Abteilung Verhalten auf Märkten, SP II 2016-214
Handle
http://hdl.handle.net/10419/149868
Status
Veröffentlichungsversion; begutachtet
Lizenz
Deposit Licence - Keine Weiterverbreitung, keine Bearbeitung