Governments should rethink social norms to boost public good provision.
The article challenges the idea that everyone should follow the same social norm for public good provision. It explores how government policies can be optimized in a dynamic setting to address social approval and public good problems. The study shows that pushing society towards complete adherence to a social norm may not always be the best approach. The research highlights the importance of considering social externalities, public good issues, and the impact of taxes on behavior. It also discusses how the cost of public funds can influence optimal outcomes and create different paths for societal development.