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Measuring Hypothetical Grandparents Preferences For Equality And Relative Standings

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Author Info
Johansson-Stenman, Olof (Department of Economics, School of Economics and Commercial Law, Göteborg University)
Carlsson, Fredrik () (Department of Economics, School of Economics and Commercial Law, Göteborg University)
Daruvala, Dinky () (Department of Economics)

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Abstract

Individuals’ aversion to risk and inequality, and their concern for relative standing, are measured through experimental choices between hypothetical societies. It is found that on average individuals are both fairly inequality-averse and have a strong concern for relative income. The results are used to illustrate welfare consequences based on a utilitarian SWF and a modified CRRA utility function. It is shown that the social marginal utility of income may then become negative, even at income levels that are far from extreme.

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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 42.

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Length: 41 pages
Date of creation: 23 May 2001
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Publication status: Published in Economic Journal, 2002, pages 362-383.
Handle: RePEc:hhs:gunwpe:0042

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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Well-being; Veil of ignorance; distributional considerations; welfare theory;

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Find related papers by JEL classification:
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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  14. Amiel, Yoram & Creedy, John & Hurn, Stan, 1999. " Measuring Attitudes towards Inequality," Scandinavian Journal of Economics, Blackwell Publishing, vol. 101(1), pages 83-96, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eggert, Håkan & Martinsson, Peter, 2003. "Are Commercial Fishers Risk Lovers?," Working Papers in Economics 90, Göteborg University, Department of Economics. [Downloadable!]
    Other versions:
  2. Carlsson, Fredrik & Daruvala, Dinky & Johansson-Stenman, Olof, 2001. "Are People Inequality Averse Or Just Risk Averse?," Working Papers in Economics 43, Göteborg University, Department of Economics. [Downloadable!]
    Other versions:
  3. Armin Falk & Markus Knell, . "Choosing the Joneses On the Endogeneity of Reference Groups," IEW - Working Papers iewwp053, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  4. Markus Knell, . "Social Comparisons, Inequality, and Growth," IEW - Working Papers iewwp005, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  5. Wendner, Ronald, 2008. "Externalities in a Model of Perpetual Youth with Age-Dependent Productivity," MPRA Paper 11335, University Library of Munich, Germany. [Downloadable!]
  6. Johansson-Stenman, Olof, 2001. "Should We Use Distributional Weights in CBA When Income Taxes Can Deal with Equity?," Working Papers in Economics 35, Göteborg University, Department of Economics. [Downloadable!]
  7. Alpizar, Francisco & Carlsson, Fredrik & Johansson-Stenman, Olof, 2001. "How Much Do We Care About Absolute Versus Relative Income and Consumption?," Working Papers in Economics 63, Göteborg University, Department of Economics. [Downloadable!]
    Other versions:
  8. Anke Leroux & John Creedy, 2005. "Optimal Land Conversion And Growth With Uncertain Biodiversity Costs," Department of Economics - Working Papers Series 957, The University of Melbourne. [Downloadable!]
    Other versions:
  9. Anke D. Wurzbacher, 2004. "Dynamic Ecological Constraints to Economic Growth," Department of Economics - Working Papers Series 909, The University of Melbourne. [Downloadable!]
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