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Measuring International Inequity Aversion

Author

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  • Tol, Richard S. J.

    (Economic and Social Research Institute (ESRI))

Abstract

I measure the rate of aversion to inequality in consumption as expressed in the development aid given by rich countries to poor ones between 1965 and 2005. Over time, OECD countries have become less concerned about international inequity. Even for a fairly leaky bucket, the consumption rate of inequity aversion is less than the rate of risk aversion, which implies that the pure rate of inequity aversion is negative. That is, rich countries would prefer to see greater inequality between rich and poor countries.

Suggested Citation

  • Tol, Richard S. J., 2008. "Measuring International Inequity Aversion," Papers WP254, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp254
    as

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    File URL: https://www.esri.ie/pubs/WP254.pdf
    File Function: First version, 2008
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    References listed on IDEAS

    as
    1. David J. Evans, 2005. "The elasticity of marginal utility of consumption: estimates for 20 OECD countries," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 197-224, June.
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    3. Fredrik Carlsson & Dinky Daruvala & Olof Johansson-Stenman, 2005. "Are People Inequality-Averse, or Just Risk-Averse?," Economica, London School of Economics and Political Science, vol. 72(3), pages 375-396, August.
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    More about this item

    Keywords

    Inequity aversion; risk aversion; income distribution; development aid;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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