Habit formation and the pareto-efficient provision of public goods
基于一个两期非线性税收模型,研究私人物品和公共物品消费中的习惯形成对公共物品帕累托有效供给的影响,发现习惯形成是否改变供给规则取决于习惯化程度是否不同以及公共物品供给是否随时间变化。
Abstract This paper examines the implications of habit formation in private and public goods consumption for the Pareto-efficient provision of public goods, based on a two-period model with nonlinear taxation. Under weak leisure separability, and if the public good is a flow-variable such that the government directly decides on the level of the public good in each period, habit formation leads to a modification of the policy rule for public good provision if, and only if, the degrees of habituation differ for private and public good consumption. By contrast, if the public good supply is time-invariant, the presence of habit formation generally alters the policy rule for public good provision.