Voting For Equity: Estimating Society'S Preferences Toward Inequality

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Voting For Equity: Estimating Society'S Preferences Toward Inequality

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Jay S. Coggins ()
Federico Perali ()

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Federico Perali

Abstract

Incorporating equity considerations in comparisons of economic policies is always challenging. This paper uses a social welfare function, a la Jorgenson and Slesnick, incorporating both e±ciency and equity to estimate society's preferences toward inequality. The function is based upon a demographically modified demand system that delivers an interpersonally comparable measure of individual welfare that aggregates exactly in a social welfare function. Our innovation is the development of a voting scheme for compiling individuals' equity preferences into a social decision. It is found that while preferences across households are heterogeneous, the Colombian preferences toward inequality are polarized around a low and a high degree of aversion to inequality. By majority rule, the Colombian society prefers the maximum possible equity. However, the most prosperous and educated deciles and the households living in Bogotà vote for higher inequality.

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Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp04_00.

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Length: 24 pages
Date of creation: Dec 2000
Date of revision:
Handle: RePEc:wpc:wplist:wp04_00

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Find related papers by JEL classification:
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
D10 - Microeconomics - - Household Behavior - - - General
J10 - Labor and Demographic Economics - - Demographic Economics - - - General

References listed on IDEAS
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.:

BLACKORBY, Charles & BOSSERT, Walter, 2004. "Interpersonal Comparisons of Well-Being," Cahiers de recherche 2004-06, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
Other versions:
- Blackorby, Charles & Bossert, Walter, 2004. "Interpersonal Comparisons of Well-Being," Cahiers de recherche 06-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ. [Downloadable!]
- Blackorby, Charles & Bossert, Walter, 2004. "Interpersonal Comparisons Of Well-Being," The Warwick Economics Research Paper Series (TWERPS) 711, University of Warwick, Department of Economics. [Downloadable!]
Blackorby, C. & Donaldson, D., 1989. "Adult-Equivalence Scales, Interpersonal Comparison Of Well-Being, And Applied Welfare Economics," UBC Departmental Archives 89-24, UBC Department of Economics.

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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.)

Olivier Bargain & Amedeo Spadaro, 2008. "Optimal Taxation, Social Contract and the Four Worlds of Welfare Capitalism," Working Papers 200816, School Of Economics, University College Dublin. [Downloadable!]
Vincenzo Atella & J. Coggins & Federico Perali, 2002. "Aversion to inequality in Italy and its determinants," CHILD Working Papers wp03_03, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
Other versions:
- Vincenzo Atella & Jay S. Coggins & Federico Perali, 2004. "Aversion to Inequality in Italy and its Determinants," CEIS Research Paper 56, Tor Vergata University, CEIS. [Downloadable!]
- Vincenzo Atella & Jay Coggins & Federico Perali, 2004. "Aversion to inequality in Italy and its determinants," Journal of Economic Inequality, Springer, vol. 2(2), pages 117-144, August. [Downloadable!] (restricted)
- Vincenzo Atella & Jay Coggins & Federico Perali, 2005. "Aversion to inequality in Italy and its determinants," Journal of Economic Inequality, Springer, vol. 2(2), pages 117-144, January. [Downloadable!] (restricted)
Amedeo Spadaro, 2008. "Optimal taxation, social contract and the four worlds of welfare capitalism," PSE Working Papers 2008-38, PSE (Ecole normale supérieure). [Downloadable!]
Other versions:
- Amedeo Spadaro, 2008. "Optimal taxation, social contract and the four worlds of welfare capitalism," Working Papers 98, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
- Spadaro A, 2008. "Optimal Taxation, Social Contract And The Four Worlds Of Welfare Capitalism," EUROMOD Working Papers EM10/08, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]

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