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On Being Inequality Averse: Measurement and Behavioral Characterization

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  • Luciano Andreozzi

Abstract

We extend Karni and Safra (2002a) axiomatic model of procedural jus- tice to provide a behavioral characterization of aversion to ex-post in- equality. Our characterization distinguishes ex-post inequality aversion from other ’social’ motives like altruism and is independent from atti- tudes towards risk. It allows for violations of the independence axiom to make room for ex-ante inequality aversion and, more generally, proce- dural justice. Our axiomatic model naturally lends itself to measure the strength of aversion to ex-post inequality.

Suggested Citation

  • Luciano Andreozzi, 2019. "On Being Inequality Averse: Measurement and Behavioral Characterization," DEM Working Papers 2019/10, Department of Economics and Management.
    • Handle: RePEc:trn:utwprg:2019/10
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    References listed on IDEAS

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    More about this item

    Keywords

    Indirect inference; directional statistics; stable distribution; weighting matrix;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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