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Inequality aversion and risk aversion

Chambers, Christopher P. (2009) Inequality aversion and risk aversion. Social Science Working Paper, 1300. California Institute of Technology , Pasadena, CA.

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This note shows that for two social welfare functions which are inequality averse and anonymous, if one is more inequality averse than the other, it induces a more risk averse household through optimal sharing than the other. We present examples showing that this comparative static can be reversed if either the property of inequality aversion or anonymity is dropped.

Item Type:Report or Paper (Working Paper)
Related URLs:
URLURL TypeDescription ItemLater version published in Journal of Economic Theory
Chambers, Christopher P.0000-0001-8253-0328
Additional Information:This note grew out of discussions with Federico Echenique and Mark Machina, toward whom I am grateful. Published as Chambers, C. P. (2012). Inequality aversion and risk aversion. Journal of Economic Theory, 147(4), 1642-1651.
Group:Social Science Working Papers
Subject Keywords:Risk aversion, Inequality aversion, Aggregation
Series Name:Social Science Working Paper
Issue or Number:1300
Classification Code:JEL: D60
Record Number:CaltechAUTHORS:20170727-151232544
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:79506
Deposited By: Jacquelyn Bussone
Deposited On:02 Aug 2017 20:46
Last Modified:09 Mar 2020 13:18

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