Describe ex-ante heterogeneity, Public Economics

Assignment Help:

Q. Describe ex-ante heterogeneity?

First conflict reflects heterogeneity among agents due to different policy preferences. Individuals or agents are heterogeneous in a number of dimensions leading them to prefer policies ex-ante. This is called ex-ante heterogeneity.

The other type is called ex-post heterogeneity which refer to the conflict (of interests) arising due to distributional implications of the public policy. Thus when a public policy has some distributional consequences, representative agents will be in conflict over distribution due to their respective "self interests". Ex-ante heterogeneity is important not only for distributive implications but also for understanding of the political aspects of the representative agents. It is also important in understanding of the time inconsistency problem of the policy process which arises when a policy maker maximizes welfare of a ‘representation agents'. In such situation, agents may, with respect to policy benefits, be identical ex-ante but are not identical ex-post.


Related Discussions:- Describe ex-ante heterogeneity

Pigovian analysis, Pigovian Analysis   The starting point of the Pigovi...

Pigovian Analysis   The starting point of the Pigovian welfare analysis is the notion that there  is a resource allocation  problem  that can be  optimally  solved. Through  hi

Personal income tax, How does it work? how is its basic structure?

How does it work? how is its basic structure?

Over-exploitation of resources, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Valuation tools - hedonic pricing method, Valuation Tools - Hedonic Pricing...

Valuation Tools - Hedonic Pricing Method Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Uncertainties of the future and heterogeneity of agents, Introduce uncertai...

Introduce uncertainties in attainments of policy outcomes, winning of elections, optimistic and pessimistic expectations of agents and relate it to various adjustments and converge

Healthcare Economics, Consider two different consumer-directed health plans...

Consider two different consumer-directed health plans. One has a $5000 deductible, with the insurance paying for all care after the deductible has been met. The other has a $2000 d

Tell me about free publicity, Free Publicity is only the periodical subscri...

Free Publicity is only the periodical subscription. This is only in newsletter in which one spills the guts about publicity. It is your chance to tap into one's brain and dig out a

Describe the public economics, Public Economics can broadly be understood a...

Public Economics can broadly be understood as that Economics which deals withpublic intervention in the economy. Its domain is supposed to encompass rationalefor public interventio

Command and control (cac), Normal 0 false false false E...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Monitoring any proposed legislation and regulations, Question 1: "The o...

Question 1: "The only social responsibility of business is to increase its profits" wrote Milton Friedman, Economics Nobel prize winner, in an article in the New York Times Mag

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd