Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/63248 
Year of Publication: 
2005
Series/Report no.: 
WIDER Research Paper No. 2005/04
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
This paper uses the data gained from an income categorization experiment for five shapes of income distributions to investigate background context effects, relative deprivation, range-frequency theory to explain background context effects, individual income satisfaction versus aggregate well-being, and the dual patterns of income categorization and limen setting. It is shown that background context effects exist and are reflected in relative deprivation. Not all precepts of range-frequency theory can be evidenced. Moreover, we demonstrate a welfare paradox which concerns a contradiction between individual income satisfaction and aggregate well-being. Finally, income categorization and limen setting harbor no response-mode effects, but exhibit conformity.
Subjects: 
relative deprivation
income distributions
income satisfaction
context effects
JEL: 
D31
D63
C91
ISBN: 
9291906670
Document Type: 
Working Paper

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