An Experimental Test of Preferences for the Distribution of Income and Individual Risk Aversion
AbstractThis study investigates the question of how much income redistribution individuals desire in a society with random differences in individual incomes. The experiments confronted individuals with choices of lotteries determining their own payoffs--to measure individual risk aversion--and with choices of lotteries determining payoffs to everyone in the group--to measure preferences regarding the distribution of income. The subjects were risk averse, but they did not display the extreme risk aversion implied by a Rawlsian maximin rule. The experiments produced little evidence that individuals favor a more equal income distribution than can be explained by individual risk aversion.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 20 (1994)
Issue (Month): 2 (Spring)
Contact details of provider:
Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
Phone: (201) 684-7346
Web page: http://www.ramapo.edu/eea/journal.html
More information through EDIRC
Distribution; Income; Redistribution;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Leonardo Becchetti & Stefano Castriota & Pierluigi Conzo, 2012.
"Calamity, Aid and Indirect Reciprocity: the Long Run Impact of Tsunami on Altruism,"
CSEF Working Papers
316, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Leonardo Becchetti & Stefano Castriota & Pierluigi Conzo, 2012. "Calamity, Aid and Indirect Reciprocity: the Long Run Impact of Tsunami on Altruism," CEIS Research Paper 239, Tor Vergata University, CEIS, revised 06 Jul 2012.
- Ilja Neustadt & Peter Zweifel, 2010.
"Is the Welfare State Sustainable? Experimental Evidence on Citizens' Preferences for Redistribution,"
CESifo Working Paper Series
3148, CESifo Group Munich.
- Neustadt, Ilja & Zweifel, Peter, 2010. "Is the Welfare State Sustainable? Experimental Evidence on Citizens' Preferences for Redistribution," MPRA Paper 22233, University Library of Munich, Germany.
- Ilja Neustadt & Peter Zweifel, 2010. "Is the Welfare State Sustainable? Experimental Evidence on Citizens’ Preferences for Redistribution," Working Papers 1003, University of Zurich, Socioeconomic Institute.
- Steffen Andersen & Glenn Harrison & Morten Lau & E. RutstrÃ¶m, 2006.
"Elicitation using multiple price list formats,"
Springer, vol. 9(4), pages 383-405, December.
- Pfarr, Christian & Ulrich, Volker, 2011.
"Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung
[Discrete-Choice-Experiments to elicit individuals' preferences for redistribution]," MPRA Paper 31707, University Library of Munich, Germany.
- Roland Vaubel, 2012. "Redistribution as income insurance?," Public Choice, Springer, vol. 152(3), pages 389-392, September.
- Neustadt, Ilja & Zweifel, Peter, 2011. "Income redistribution: how to divide the pie?," MPRA Paper 35427, University Library of Munich, Germany.
- Rutstrom, E. Elisabet & Williams, Melonie B., 2000. "Entitlements and fairness:: an experimental study of distributive preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 43(1), pages 75-89, September.
- Thomas Hammerschmidt & Hans-Peter Zeitler & Reiner Leidl, 2004. "A utility-theoretic approach to the aggregation of willingness to pay measured in decomposed scenarios: development and empirical test," Health Economics, John Wiley & Sons, Ltd., vol. 13(4), pages 345-361.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross).
If references are entirely missing, you can add them using this form.