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

Identify appropriate economic policy, Examine issues and decisions using th...

Examine issues and decisions using the economic way of thinking; identify appropriate economic policy; communicate economics in written format Topic Upon finishing your d

Labour market anomaly, Market theory is expected to apply to factor markets...

Market theory is expected to apply to factor markets in a similar way to its application to product markets. However, there is extensive evidence in the Mauritian economy to sugges

Development of green indicators , Development of Green Indicators ...

Development of Green Indicators Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Ecommerse, #questioi hour classn..

#questioi hour classn..

Requisite modifications to national income accounts, Requisite Modification...

Requisite Modifications to National Income Accounts Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetE

Green accounting, Normal 0 false false false EN-IN X-...

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

GDP as a social welfare function, What are the properties and limitations o...

What are the properties and limitations of GDP as a social welfare function?

Privatisation and decentralisation, critically examine that privatization c...

critically examine that privatization can always decentralize economic power

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