Tag
welfare_economics
3 findings
EducationHeterogeneous Peer Preference SortingDemonstrates that under heterogeneous student preferences across curricula (such as commercial versus academic/industrial tracks), student sorting increases average aggregate utility without imposing negative peer externalities on non-participants.Expert TheoryEducationLinear-in-Means Peer Externalities ModelThe theoretical framework demonstrates that under linear-in-means peer assumptions, student re-sorting does not alter aggregate population test scores ($\bar{Y} = \beta_0 \bar{X} + \beta_1 \bar{X}$); individual gains are strictly offset by losses to non-participants unless $\beta_2 > 0$.Expert TheoryHealthPrivate Utility vs. Public Health Externality Trade-OffReductions in condom use following community HIV status learning increase individual utility by eliminating safe-sex disutility, but increase overall disease transmission risk in high HIV-prevalence regions.Expert Theory