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Temptation and Taxation

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Author Info
Per Krusell
Burhanettin Kuruscu
Anthony A. Smith, Jr.

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Abstract

In this paper we attempt to (i) extend the competitive equilibrium neoclassical growth model to incorporate consumer preferences that are of the Gul-Pesendorfer variety; (ii) use the model to analyze taxation and welfare; and (iii) extend and specialize the Gul-Pesendorfer temptation formulation to be dynamic and, in particular, quasi-geometric, thus providing a link to, and possibly an interpretation of, the Laibson model.

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Publisher Info
Paper provided by Carnegie Mellon University, Tepper School of Business in its series GSIA Working Papers with number 2001-12.

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Date of creation: Dec 2000
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Handle: RePEc:cmu:gsiawp:-1095235306

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Postal: Tepper School of Business, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213-3890
Web page: http://www.tepper.cmu.edu/

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  1. Canadian Macro Study Group
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  1. Faruk Gul & Wolfgang Pesendorfer, 2003. "Self-control, revealed preference and consumption choice," Levine's Bibliography 506439000000000362, UCLA Department of Economics. [Downloadable!]
    Other versions:
  2. Jianjun Miao, 2004. "Option Exercise with Temptation," Microeconomics 0409002, EconWPA. [Downloadable!]
    Other versions:
  3. Klaus Nehring, 2006. "Self-Control through Second-Order Preferences," Levine's Bibliography 321307000000000391, UCLA Department of Economics. [Downloadable!]
  4. Marko Köthenbürger, 2006. "Ex-Post Redistribution in a Federation: Implications for Corrective Policy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Kevin X.D. Huang & Zheng Liu & Qi Zhu, 2005. "Temptation and Self-Control: Some Evidence from the Consumer Expenditure Survey," Emory Economics 0507, Department of Economics, Emory University (Atlanta). [Downloadable!]
    Other versions:
  6. Kevin X. D. Huang & Zheng Liu & Qi Zhu, 2006. "Temptation and self-control: some evidence and applications," Staff Report 367, Federal Reserve Bank of Minneapolis. [Downloadable!]
    Other versions:
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