Measuring tastes for equity and aggregate wealth behind the veil of ignorance

Jan (J.P.M.) Heufer, Jason Shachat, Yan Xu

We propose an instrument to measure individuals' social preferences regarding equity and efficiency behind a veil of ignorance. We pair portfolio and wealth distribution choice problems which have a common budget set. For a given bundle, the distribution over an individual's wealth is the same for both problems. The portfolio choice serves as a benchmark to evaluate whether the wealth distribution choice exhibits equity or efficiency preferring tastes. We report experiments using a within-subject design testing the veracity of this instrument. We find clusters of equity preferring, efficiency preferring, and socially agnostic individuals through reduced form, revealed preference, and structural estimation analyses.

MoreLess

Year of publication:	[2018]
Authors:	Heufer, Jan ; Shachat, Jason M. ; Xu, Yan
Publisher:	Amsterdam, The Netherlands : Tinbergen Institute
Subject:	Inequity aversion \| revealed preference \| risk preferences \| social preferences \| veil of ignorance \| Soziale Wohlfahrtsfunktion \| Social welfare function \| Präferenztheorie \| Theory of preferences \| Gerechtigkeit \| Justice \| Risikopräferenz \| Risk attitude \| Experiment \| Einkommensverteilung \| Income distribution \| Offenbarte Präferenzen \| Revealed preferences \| Risikoaversion \| Risk aversion \| Rawls-Gerechtigkeitstheorie \| Rawls's theory of justice \| Vermögen \| Wealth \| Wohlfahrtsökonomik \| Welfare economics \| Verteilungsgerechtigkeit \| Distributive justice

Extent:	1 Online-Ressource (circa 33 Seiten) Illustrationen
Series:	Discussion paper / Tinbergen Institute. - Rotterdam [u.a.] : [Verlag nicht ermittelbar], ISSN 0929-0834, ZDB-ID 2435783-2. - Vol. TI 2018, 087
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/185606 [Handle]
Classification:	C14 - Semiparametric and Nonparametric Methods ; C91 - Laboratory, Individual Behavior ; D11 - Consumer Economics: Theory ; D12 - Consumer Economics: Empirical Analysis ; D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011928322