Download full text
(external source)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
http://hdl.handle.net/10419/149868
Exports for your reference manager
Image concerns and the political economy of publicly provided private goods
[working paper]
Corporate Editor
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... view more
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.... view less
Keywords
political economy; image; market; contribution in kind; majority election
Classification
Sociology of Economics
Economic Policy
Free Keywords
D63; D72; H42; Status preferences; [Dual provision] In-kind provision
Document language
English
Publication Year
2016
City
Berlin
Page/Pages
40 p.
Series
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
Published Version; reviewed
Licence
Deposit Licence - No Redistribution, No Modifications