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Inequality aversion, social discount, and time discount rates

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  • Takanori Ida
  • Kazuhito Ogawa

Abstract

Purpose - This paper aims to conduct a hypothetical dictator game with social distance and time delays using conjoint analysis. Design/methodology/approach - Responses from 1,347 Japanese adults are collected through an online survey, and their responses are analyzed using a random parameter logit model. Findings - The paper finds that social preference for the present income of a stranger equals social preference for the income of an acquaintance 140 days later, of a close friend 224 days later, and of a family member 255 days later. Originality/value - The paper simultaneously estimates social preference parameters, including the inequality aversion rate, the social discount rate, and the time discount rate.

Suggested Citation

  • Takanori Ida & Kazuhito Ogawa, 2012. "Inequality aversion, social discount, and time discount rates," International Journal of Social Economics, Emerald Group Publishing, vol. 39(5), pages 314-329, April.
  • Handle: RePEc:eme:ijsepp:v:39:y:2012:i:5:p:314-329
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    Cited by:

    1. Shusaku Sasaki & Naoko Okuyama & Masao Ogaki & Fumio Ohtake, 2017. "Education and pro-family altruistic discrimination against foreigners: Five-country comparisons," ISER Discussion Paper 1002, Institute of Social and Economic Research, Osaka University.
    2. Dorian Jullien, 2016. "Under Uncertainty, Over Time and Regarding Other People: Rationality in 3D," GREDEG Working Papers 2016-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    3. Dorian Jullien, 2017. "Under Risk, Over Time, Regarding Other People: Language and Rationality Within Three Dimensions
      [Face au risque, dans le temps, par rapport aux autres : langage et rationalité dans trois dimensions
      ," Post-Print halshs-01651042, HAL.

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