In normative public economics it is crucial to know how fast the marginal utility of income declines as income increases. One needs this parameter for cost-benefit analysis, for optimal taxation and for the (Atkinson) measurement of inequality. We estimate this parameter using four large...

Combatting Unemployment Richard Layard and Stephen J. Nickell Edited by Werner Eichhorst Klaus F. Zimmermann OXFORD UNIVERSITY PRESS Contents Introduction by the Editors: • A New Understanding of Labor Market Institutions - Layard and Nickell on Labor...