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Economic models typically assume that individual wants are determined by forces exogenous to the economic system. Social psychology and consumer research, in contrast, support the view that the perceived benefits of consumption are strongly affected by endogenously determined social norms. This...
Persistent link: https://www.econbiz.de/10004980877
The paper explores how repeated revisions of consumption plans increase long-run utility. If agents value present … generalization of the Samuelson discounted utility model to allow for utility linked to next period consumption. Agents are assumed …
Persistent link: https://www.econbiz.de/10008476215
The standard approach in empirical analyses of income distributions is to estimate income inequality in a country under the assumption of full interpersonal comparability of income. To be meaningful, this method requires that prices and qualities of goods as well as consumption habits are...
Persistent link: https://www.econbiz.de/10004980772
This paper examines different approaches to the measurement of multidimensional inequality and poverty. First, it outlines three aspects preliminary to any multidimensional study: the selection of the relevant dimensions; the indicators used to measure them; and the procedures for their...
Persistent link: https://www.econbiz.de/10011123421
utility function. This may be founded on an assumption of the household maximizing a welfare function of individual utilities …-household comparisons of welfare on this approach is generally not valid. The household will generally put different weight on the utility … of the various household members, and this weighting does not necessarily correspond to society's aggregation of utility …
Persistent link: https://www.econbiz.de/10004980891
When is one distribution (of income, consumption, or some other economic variable) more equal or better than another? This question has proven difficult to answer in situations where distribution functions intersect and no unambiguous ranking can be attained without introducing weaker criteria...
Persistent link: https://www.econbiz.de/10010720124
The paper proposes a particular approach to model the utility of income. We develop a theoretical framework that …
Persistent link: https://www.econbiz.de/10004980804
In this paper we propose a particular approach to measuring utility of income. To this end we develop a theoretical …
Persistent link: https://www.econbiz.de/10004980865
Despite a broad consensus on the need to account for the value of public services and geographical cost of living differences on the measurement of poverty, there is little reliable evidence on how these factors actually affect poverty estimates. Unlike the standard approach in studies of the...
Persistent link: https://www.econbiz.de/10004980680
Despite a broad consensus on the need to take into account the value of public services in distributional analysis, there is little reliable evidence on how the inclusion of such non-cash income actually affects poverty and inequality estimates. In particular, the equivalence scales applied to...
Persistent link: https://www.econbiz.de/10008458602