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A pilot test of using the veil of ignorance approach to estimate a social welfare function for income

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  • Magnus Johannesson
  • Ulf-G Gerdtham

Abstract

The veil of ignorance approach is tested as a basis for empirically determining the shape of the social welfare function for income. An experiment is carried out where the participants choose between different societies that differ with respect to per capita income and the distribution of income. The answers are analysed using logistic regression analysis. According to the results the respondents are willing to give up Swedish Crowns (SEK) 1 in the group with more income to gain SEK 0.35 in the group with less income, but this trade-off is independent of the size of the difference in income between the groups.

Suggested Citation

  • Magnus Johannesson & Ulf-G Gerdtham, 1995. "A pilot test of using the veil of ignorance approach to estimate a social welfare function for income," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 400-402.
    • Handle: RePEc:taf:apeclt:v:2:y:1995:i:10:p:400-402
    DOI: 10.1080/758519000
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    References listed on IDEAS

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    1. John C. Harsanyi, 1953. "Cardinal Utility in Welfare Economics and in the Theory of Risk-taking," Journal of Political Economy, University of Chicago Press, vol. 61(5), pages 434-434.
    2. John C. Harsanyi, 1955. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility," Journal of Political Economy, University of Chicago Press, vol. 63(4), pages 309-309.
    3. Per-Olov Johansson & Bengt Kriström & Karl Göran Mäler, 1989. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Response Data: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 1054-1056.
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    Cited by:

    1. Sven Tengstam, 2014. "Disability And Marginal Utility Of Income: Evidence From Hypothetical Choices," Health Economics, John Wiley & Sons, Ltd., vol. 23(3), pages 268-282, March.
    2. John Bone & Paolo Crosetto & John Hey & Carmen Pasca, 2021. "The Acceptability of Accountability," Constitutional Political Economy, Springer, vol. 32(4), pages 476-501, December.
    3. Schildberg-Hörisch, Hannah, 2010. "Is the veil of ignorance only a concept about risk? An experiment," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1062-1066, December.
    4. Leonardo Becchetti & Giacomo Degli Antoni & Stefania Ottone & Nazaria Solferino, 2011. "Spectators versus stakeholders with or without veil of ignorance: the difference it makes for justice and chosen distribution criteria," Econometica Working Papers wp31, Econometica.
    5. Leonardo Becchetti & Giacomo Degli Antoni & Stefania Ottone & Nazaria Solferino, 2012. "Spectators Versus Stakeholders with/without Information: the Difference it Makes for Justice," CEIS Research Paper 221, Tor Vergata University, CEIS, revised 20 Feb 2012.
    6. Olof Johansson-Stenman & Fredrik Carlsson & Dinky Daruvala, 2002. "Measuring Future Grandparents" Preferences for Equality and Relative Standing," Economic Journal, Royal Economic Society, vol. 112(479), pages 362-383, April.
    7. Hansen, Fredrik & Anell, Anders & Gerdtham, Ulf-G & Lyttkens, Carl Hampus, 2013. "The Future of Health Economics: The Potential of Behavioral and Experimental Economics," Working Papers 2013:20, Lund University, Department of Economics.
    8. Johansson-Stenman, Olof & Carlsson, Fredrik & Daruvala, Dinky, 2001. "Measuring Hypothetical Grandparents Preferences For Equality And Relative Standings," Working Papers in Economics 42, University of Gothenburg, Department of Economics.
    9. İbrahim Erdem SEÇİLMİŞ, 2014. "Seniority: A Blessing or A Curse? The Effect of Economics Training on the Perception of Distributive Justice," Sosyoekonomi Journal, Sosyoekonomi Society, issue 22(22).
    10. Chee Kian Leong, 2014. "The Prince and the Pauper: Fairness through Thick and Thin Veils of Ignorance," CESifo Working Paper Series 4918, CESifo.
    11. Joshua Chen-Yuan Teng & Joseph Tao-yi Wang & C. C. Yang, 2020. "Justice, what money can buy: a lab experiment on primary social goods and the Rawlsian difference principle," Constitutional Political Economy, Springer, vol. 31(1), pages 45-69, March.
    12. John Bone & Paolo Crosetto & John D Hey & Carmen Pasca, 2013. "Chance versus choice: eliciting attitudes to fair compensations," Discussion Papers 13/15, Department of Economics, University of York.
    13. Fredrik Andersson & Carl Hampus Lyttkens, 1999. "Preferences for equity in health behind a veil of ignorance," Health Economics, John Wiley & Sons, Ltd., vol. 8(5), pages 369-378, August.

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