Open Access. Powered by Scholars. Published by Universities.®
- Keyword
- File Type
Articles 1 - 2 of 2
Full-Text Articles in Econometrics
Resource Allocation, Affluence And Deadweight Loss When Relative Consumption Matters, Jesse A. Matheson, B. Curtis Eaton
Resource Allocation, Affluence And Deadweight Loss When Relative Consumption Matters, Jesse A. Matheson, B. Curtis Eaton
Jesse A Matheson
We explore the link between affluence and well-being using a simple general equilibrium model with a pure Veblen good. Individuals derive utility from the pure Veblen good based solely on how much they consume relative to others. In equilibrium, consumption of the pure Veblen good is the same for everyone, so the Veblen good contributes nothing to utility. Hence, resources devoted to the Veblen good provide us with a measure of deadweight loss. We ask: Under what preference conditions does the proportion of productive capacity devoted to the pure Veblen good increase as an economy becomes more affluent? In a …
Should Income Transfers Be Targeted Or Universal? Insights From Public Pension Influences On Elderly Mortality In Canada, 1921–1966, Jesse A. Matheson, J.C. Herbert Emery
Should Income Transfers Be Targeted Or Universal? Insights From Public Pension Influences On Elderly Mortality In Canada, 1921–1966, Jesse A. Matheson, J.C. Herbert Emery
Jesse A Matheson
We investigate the impact of Canada’s means-tested and universal public pension programs on the mortality rates of recipient age groups for the period 1921–1966. We find that only the universal program significantly reduced recipient age group mortality rates. The implied social value of the mortality risk reduction from this program is onetenth of the value per statistical life associated with contemporary government policy, meaning that Canadians did not need to place a high value on the life of a senior to justify the higher cost of the universal program.