Bequests, Control Rights, and Cost-Benefit Analysis

19 Pages Posted: 30 Oct 2001

See all articles by Amihai Glazer

Amihai Glazer

University of California, Irvine - Department of Economics

Vesa Kanniainen

University of Helsinki - Department of Political and Economic Studies; CESifo (Center for Economic Studies and Ifo Institute)

Esko Niskanen

University of Helsinki

Date Written: October 2001

Abstract

Consider a public project which produces a consumption good and which benefits future generations. Let a conventional cost-benefit analysis find that it gives higher benefits than projects it would displace in the private sector. Voters may nevertheless oppose the public project: the combination of a desire to control bequests and the lack of control over who gets benefits from a public project makes the public project unattractive. In contrast, private projects have owners, allowing parents to control whether their children will receive the benefits from such projects. Parents can therefore better influence the behavior of their children when they have the option of giving the children title to private projects.

Keywords: Public Projects, Cost-benefit Analysis

JEL Classification: H43

Suggested Citation

Glazer, Amihai and Kanniainen, Vesa and Niskanen, Esko, Bequests, Control Rights, and Cost-Benefit Analysis (October 2001). CESifo Working Paper Series No. 576. Available at SSRN: https://ssrn.com/abstract=287676

Amihai Glazer

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States
949-854-6563 (Phone)
949-824-2182 (Fax)

Vesa Kanniainen (Contact Author)

University of Helsinki - Department of Political and Economic Studies ( email )

P.O. Box 54
FIN-00014 Helsinki
Finland
+358-0-9-1911 (Phone)
+358-0-191-8877 (Fax)

HOME PAGE: http://www.cesifo.de

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Esko Niskanen

University of Helsinki

University of Helsinki
Helsinki, FIN-00014
Finland

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