HOME » Publications » Economic Review

Abstract

Vol. 62, No. 1, pp. 1-19 (2011)

“Moral Motivation in Public Economic Activities”
Yukinari Hayashi (Faculty of Health and Welfare, Hiroshima International University), Shinichiro Okushima (Graduate School of Systems and Information Engineering University of Tsukuba), Akira Yamada (Department of Economics, Sapporo University), Naoki Yoshihara (Institute of Economic Research, Hitotsubashi University)

This paper gives an overview of the recent literature on theoretical analysis of morally motivated public actions. It presumes that individuals have not only their subjective and self-interested preferences on consumption spaces, but also morally motivated preferences based on some intrinsic value judgments. Given such a setting, the paper examines some pioneer works on how the existence of individuals with moral motivation has effects on economic resource allocations in the context of free-riding problems in public service provisions, moral hazard problems in private ownership versus public ownership, Corporate Social Responsibility, etc.