Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/185606
Authors: 
Heufer, Jan
Shachat, Jason M.
Xu, Yan
Year of Publication: 
2018
Series/Report no.: 
Tinbergen Institute Discussion Paper TI 2018-087/I
Abstract: 
We propose an instrument to measure individuals' social preferences regarding equity and efficiency behind a veil of ignorance. We pair portfolio and wealth distribution choice problems which have a common budget set. For a given bundle, the distribution over an individual's wealth is the same for both problems. The portfolio choice serves as a benchmark to evaluate whether the wealth distribution choice exhibits equity or efficiency preferring tastes. We report experiments using a within-subject design testing the veracity of this instrument. We find clusters of equity preferring, efficiency preferring, and socially agnostic individuals through reduced form, revealed preference, and structural estimation analyses.
Subjects: 
Inequity aversion
revealed preference
risk preferences
social preferences
veil of ignorance
JEL: 
C14
C91
D11
D12
D63
Document Type: 
Working Paper
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