Optimal Paternalism∗
نویسنده
چکیده
If one accepts some paternalistic objectives, how should this shape policy? This paper addresses this issue by considering the trade-off that results when agents have superior information regarding their own situation and tastes but a paternalistic principal views agents’ tastes as as being biased. Applications include: savings behavior by hyperbolic discounting consumers, schooling choice by teenagers and many situations with externalities. We show that under certain conditions the optimal mechanism takes a simple threshold form. Particular attention is given to the savings case and the implication for forced minimum savings policies.
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Adler, M. (2011). Well-being and fair distribution: Beyond cost-benefit analysis. Cambridge, UK: Cambridge University Press. Allcott, H., Mullainathan, S., & Taubinsky, D. (2014). Energy policy with externalities and internalities. Journal of Public Economics, 112, 72–88. Conly, S. (2012). Against autonomy: Justifying coercive paternalism. Cambridge, UK: Cambridge University Press. DellaVigna, ...
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