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Optimal transfer policies

Author

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  • Stähler, Frank

Abstract

This paper discusses the role of transfers in a non-cooperative environment. If reselling in-kind-transfers involves some retrading costs, in-kind transfers are supposed to realise at least some of the mutual bargaining gains which would be left unexploited by mere use of monetary payments. These retrading costs bias the recipient's consumption plans in favour of the donor. However, the paper shows that non-enforceability alone does not support the exclusive application of inkind transfers in general because income effects can leave some scope for monetary transfers. The results of the model are discussed for some applications.

Suggested Citation

  • Stähler, Frank, 1995. "Optimal transfer policies," Kiel Working Papers 702, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:702
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    References listed on IDEAS

    as
    1. Bruce, Neil & Waldman, Michael, 1991. "Transfers in Kind: Why They Can Be Efficient and Nonpaternalistic," American Economic Review, American Economic Association, vol. 81(5), pages 1345-1351, December.
    2. Anastasios Xepapadeas (ed.), 1996. "Economic Policy for the Environment and Natural Resources," Books, Edward Elgar Publishing, number 1012.
    3. Irwin Garfinkel, 1973. "Is In-Kind Redistribution Efficient," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(2), pages 320-330.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    In-kind transfers; monetary transfers; optimal policies;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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