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Philantropic motives and contribution policy: A note (1984)

Deutsch, Joseph

Springer

Public choice 44 (1984), S. 501-505

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ISSN: 1573-7101

Source: Springer Online Journal Archives 1860-2000

Topics: Economics

Notes: 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.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1007/BF00119696

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