Layard, Richard; Mayraz, Guy; Nickell, Stephen J - London School of Economics (LSE) - 2007
In normative public economics it is crucial to know how fast the marginal utility of income declines as income … inequality. We estimate this parameter using four large cross-sectional surveys of subjective happiness and two panel surveys …, using a number of assumptions, we are able to estimate the elasticity of marginal utility with respect to income. We obtain …