Philantropic motives and contribution policy: A note

Research output: Contribution to journalArticlepeer-review

Abstract

This note analyzes the results of Ben-Zion and Spiegel regarding different forms of transfer from rich persons to poor ones. Assuming a more general utility function, not necessarily additive or homothetic, this note shows that a combined policy of income transfer with specific subsidy to the poor consumer can lead to an optimal solution (first best) from the donor's point of view. If it is not possible to differentiate between consumers, a system of subsidy to all consumers can achieve a second best solution.

Original languageEnglish
Pages (from-to)501-505
Number of pages5
JournalPublic Choice
Volume44
Issue number3
DOIs
StatePublished - Jan 1984

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