75 research outputs found

    Altruism and charitable giving in a fully replicated economy

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    In this paper, an economy is analyzed where one group of agents, the altruists, cares about the well-being of another group of agents, the recipients. It is asked how changes in the size of these groups affect the altruists’ charitable giving in the Nash equilibrium. I show that a pure group size effect, i.e., a proportional expansion of both subgroups can lead to less free riding and to a lower degree of underprovision relative to the efficient level of charitable giving.altruism, public goods, group size, charitable giving

    A note on the link between public expenditures and distortionary taxation

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    This note deals with the optimal provision of a public good in the context of the Ramsey tax model. It is shown that the second-best level of public good provision is inefficiently low relative to a situation where additional expenditures can be financed by lump-sum taxation.distortionary taxation

    Second-Best Pollution Taxation and Environmental Quality

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    This paper deals with second-best pollution taxation by investigating allocations instead of the corresponding tax rates. Assuming certain restrictions on utility and that the marginal revenue from environmental taxation is positive, it is shown that environmental quality is higher in second best where only distortionary taxes are used to finance public expenditures than in the first-best optimum where lump-sum taxes are available.environmental taxation, public goods

    Income taxation and production efficiency in a simple two-sector economy

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    In a recent contribution, H. Naito (1999) has shown that production efficiency may be violated in the optimum with non-linear income taxation. Using a slightly simpler framework, this paper complements Naito's analysis in showing that production efficiency does not hold in the optimum with (i) non-linear and (ii) linear income taxation provided that second best and first best do not coincide. These findings indicate that income taxation generally implies the desirability to complement the distortion between consumer and producer prices by means of a corresponding distortion in input prices.income taxation, production efficiency

    Group size and free riding when private and public goods are gross substitutes

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    Using the traditional model of voluntary public good provision, it is shown that an expansion of group size exacerbates free riding tendencies as long as private consumption and the public good are strictly normal and weak gross substitutes. This result generalizes a previous Cobb-Douglas example with respect to preferences and asymmetric equilibria.private provision of public goods, group size

    Amplifying Signals and avoiding surprises: Potential synergies between ICOS and eLTER at the Water-Climate-Greenhouse Gas nexus

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    Environmental thresholds. tipping points and subsequent regime shifts associated with the water/climate/greenhouse gas nexus pose a genuine threat to sustainability. Both the ongoing forest dieback in Central Europe caused by the extreme droughts of the last years and the effect of global warming on ecosystem functioning have the potential to cause ecological surprise (sensu Lindenmayer et al. 2010) where ecosystems are pushed into new, unexpected and usually undesirable states. Formulating appropriate scientific and societal responses to such regime shifts requires breadth, depth, intensity and duration of environmental, ecological and socio-ecological monitoring. Broad geographic coverage to encompass relevant biophysical and societal gradients, consideration of all appropriate parameters, adequate measurement frequency and long-term, standardized observations are all needed to provide reliable early warnings of severe environmental change, test ecosystem models, avoid double counting in carbon accounting and to reduce the likelihood of undesirable ecological outcomes. This is especially true of events driven by simultaneous changes in climate, the water cycle and human activities. Well-supported, site-based research infrastructures (RIs; e.g., eLTER and ICOS) are essential tools with the necessary breadth, depth, intensity and duration for early detection and attribution of environmental change. Individually, the eLTER and ICOS RIs generate a wealth of data supporting the ecosystem and carbon research communities. Achieving synergies between the two RIs can add value to both communities and potentially offer meaningful insight into the European water-climate-greenhouse gas nexus. The unique insights into processes and mechanisms of ecosystem dynamics and functioning obtained from high intensity monitoring conducted by the ICOS RI greatly increase the likelihood of detecting signals of environmental change. These signals must be placed into the context of their long-term trajectory and potential societal and environmental drivers. The spatially extensive, long-term, multi-disciplinary monitoring conducted at LTER sites and LTSER platforms under the umbrella of the eLTER programme can provide this context. Here, we outline one potential roadmap for achieving synergies between the ICOS and eLTER RIs focussing on the value of co-location for improved understanding of the water/climate/greenhouse gas nexus. Based on data and experiences from intensively studied research sites, we highlight some of the possibilities for reducing the likelihood of ecological surprise that could result from such synergies.Peer reviewe

    Long-Term Socio-Ecological Research in Practice: Lessons from Inter- and Transdisciplinary Research in the Austrian Eisenwurzen

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    Long-Term Socio-Ecological Research (LTSER) is an inter- and transdisciplinary research field addressing socio-ecological change over time at various spatial and temporal scales. In the Austrian Eisenwurzen region, an LTSER platform was founded in 2004. It has fostered and documented research projects aiming at advancing LTSER scientifically and at providing regional stakeholders with relevant information for sustainable regional development. Since its establishment, a broad range of research activities has been pursued in the region, integrating information from long-term ecological monitoring sites with approaches from social sciences and the humanities, and in cooperation with regional stakeholders. Based on the experiences gained in the Eisenwurzen LTSER platform, this article presents current activities in the heterogeneous field of LTSER, identifying specific (inter-)disciplinary contributions of three research strands of LTSER: long-term ecological research, socio-ecological basic research, and transdisciplinary research. Given the broad array of diverse contributions to LTSER, we argue that the platform has become a relevant "boundary organization", linking research to its regional non-academic context, and ensuring interdisciplinary exchange among the variety of disciplines. We consider the diversity of LTSER approaches an important resource for future research. Major success criteria of LTSER face specific challenges: (1) existing loose, yet stable networks need to be maintained and extended; (2) continuous generation of and access to relevant data needs to be secured and more data need to be included; and (3) consecutive research projects that have allowed for capacity building in the past may be threatened in the future if national Austrian research funders cease to provide resources

    The Threat of Capital Drain: A Rationale for Public Banks?

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    This paper yields a rationale for why subsidized public banks may be desirable from a regional perspective in a financially integrated economy. We present a model with credit rationing and heterogeneous regions in which public banks prevent a capital drain from poorer to richer regions by subsidizing local depositors, for example, through a public guarantee. Under some conditions, cooperative banks can perform the same function without any subsidization; however, they may be crowded out by public banks. We also discuss the impact of the political structure on the emergence of public banks in a political-economy setting and the role of interregional mobility
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