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Measuring International Inequity Aversion

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Author Info
Tol, Richard S. J. () (Economic and Social Research Institute (ESRI))

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Abstract

I measure the rate of aversion to inequality in consumption as expressed in the development aid given by rich countries to poor ones between 1965 and 2005. Over time, OECD countries have become less concerned about international inequity. Even for a fairly leaky bucket, the consumption rate of inequity aversion is less than the rate of risk aversion, which implies that the pure rate of inequity aversion is negative. That is, rich countries would prefer to see greater inequality between rich and poor countries.

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File URL: http://www.esri.ie/UserFiles/publications/20080919092928/WP254.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP254.

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Length: 16 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:esr:wpaper:wp254

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Related research
Keywords: Inequity aversion; risk aversion; income distribution; development aid;

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. David J. Evans, 2005. "The elasticity of marginal utility of consumption: estimates for 20 OECD countries," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 197-224, June.
  2. Fredrik Carlsson & Dinky Daruvala & Olof Johansson-Stenman, 2005. "Are People Inequality-Averse, or Just Risk-Averse?," Economica, London School of Economics and Political Science, vol. 72(3), pages 375-396, 08. [Downloadable!] (restricted)
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  3. Johansson-Stenman, Olof, 2005. "Global environmental problems, efficiency and limited altruism," Economics Letters, Elsevier, vol. 86(1), pages 101-106, January. [Downloadable!] (restricted)
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This page was last updated on 2009-11-11.

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