Evaluating Real World Income Distributions Behind the Veil of Ignorance - How Risk Averse Do You Have to Be to Prefer Europe Over the US?
The paper uses a veil of ignorance approach and income distribution data of developed countries to arrive at inequality corrected income rankings. While a risk neutral individual (based on year 2000 data) would have preferred to be born into the US rather than any European country in our sample except Luxembourg, a coefficient of relative risk aversion of 2 suffices to make several European countries look preferable. The paper also sheds light on the risk corrected average income on a gender basis and scans for times of diminished expectations, i.e. periods where the expected utility of being born into a country has reduced over time
Year of publication: |
2013
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Authors: | Weichenrieder, Alfons J. |
Other Persons: | Zafar, Tasneem (contributor) |
Publisher: |
[2013]: [S.l.] : SSRN |
Subject: | Europa | Europe | Risikoaversion | Risk aversion | Präferenztheorie | Theory of preferences | Einkommensverteilung | Income distribution | Verfassungsökonomik | Constitutional economics | USA | United States |
Saved in:
freely available
Extent: | 1 Online-Ressource (31 p) |
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Series: | CESifo Working Paper Series ; No. 3632 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 14, 2011 erstellt |
Other identifiers: | 10.2139/ssrn.1959271 [DOI] |
Classification: | D31 - Personal Income, Wealth and Their Distributions ; H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013092158