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Inequality and Risk Aversion in Health and Income: An Empirical Analysis Using Hypothetical Scenarios with Losses

Author

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  • Ignacio Abásolo

    (Departamento de Economía de las Instituciones, Estadística Económica y Econometría, Facultad de Ciencias Económicas y Empresariales. Universidad de La Laguna, Spain)

  • Aki Tsuchiya

    (Department of Economics, The University of Sheffield)

Abstract

Four kinds of distributional preferences are explored: inequality aversion in health, inequality aversion in income, risk aversion in health, and risk aversion in income. Face to face interviews of a representative sample of the general public are undertaken using hypothetical scenarios involving losses in either health or income. Whilst in health risk aversion is stronger than inequality aversion, in the income context we cannot reject that attitudes to inequality aversion and risk aversion are the same. When we compare across contexts we find that inequality aversion and risk aversion are both stronger in income than they each are in health.

Suggested Citation

  • Ignacio Abásolo & Aki Tsuchiya, 2013. "Inequality and Risk Aversion in Health and Income: An Empirical Analysis Using Hypothetical Scenarios with Losses," Working Papers 2013005, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2013005
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    File URL: http://www.shef.ac.uk/economics/research/serps/articles/2013_005.html
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    References listed on IDEAS

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    More about this item

    Keywords

    inequality; risk aversion; health; income;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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