Are people inequality averse or just risk averse?

Carlsson, Fredrik,1968Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit (author)

Individuals' preferences for risk and inequality are measured through experimental choices between hypothetical societies and lotteries. The median relative risk aversion, which is often seen to reflect social inequality aversion, is between 2 and 3. We also estimate the individual inequality aversion, reflecting individuals' willingness to pay for living in a more equal society.Left-wing voters and women are both more risk- and inequality averse than others. The model allows for non-monotonic SWFs, implying that welfare may decrease with an individual's income at high income levels. This is illustrated in simulations based on the empirical results.

Daruvala, Dinky,1962Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit (author)
Johansson-Stenman, Olof,1966Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit(Swepub:gu)xjohol (author)
Göteborgs universitetInstitutionen för nationalekonomi med statistik, Enheten för miljöekonomi (creator_code:org_t)

By the author/editor: Carlsson, Fredri ...; Daruvala, Dinky, ...; Johansson-Stenma ...

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