Earnings differences are a recurring topic of public discussion in Germany. Data from the long-term Socio-Economic Panel (SOEP) study as well as a separate survey of German employees (LINOS) show that earnings inequalities are generally perceived as fair while a substantial share of the...

Using the unique financial reporting format in China, where quarterly earnings are reported on a year-to-date basis, we test behavioral finance models featuring fundamental extrapolation. We show that stocks with the strongest past year-to-date earnings growth experience a significant price...

We characterize a measure of social welfare for linear production economies in which individuals differ in productive skills and preferences. The key feature of our measure is that it aggregates fairness gaps, defined as the difference between the money-metric utility that the individual...