Empirical Welfare Analysis: When Preferences Matter

Abstract : Fleurbaey and Maniquet have proposed the criteria of conditional equality and of egalitarian equivalence to assess the equity among individuals in an ordinal setting. Empirical applications are rare and only partially consistent with their framework. We propose a new empirical approach that relies on individual preferences, is consistent with the ordinal criteria and enables to compare them with the cardinal criteria. We estimate a utility function that incorporates individual heterogeneous preferences, obtain ordinal measures of well-being and apply conditional equality and egalitarian equivalence. We then propose two cardinal measures of well-being, that are comparable with the ordinal model, to compute Roemer’s and Van de gaer’s criteria. Finally we compare the characteristics of the worst-off displayed by each criterion. We apply this model to a sample of US micro data and obtain that about 18% of the worst-off are not common to all criteria.
Complete list of metadatas

https://hal.archives-ouvertes.fr/hal-01821143
Contributor : Jean-Francois Carpantier <>
Submitted on : Friday, June 22, 2018 - 12:09:49 PM
Last modification on : Saturday, June 23, 2018 - 1:21:25 AM

Identifiers

  • HAL Id : hal-01821143, version 1

Collections

Citation

Jean-François Carpantier, Christelle Sapata. Empirical Welfare Analysis: When Preferences Matter. [Research Report] 13-11, Center for Research in Economic Analysis, University of Luxembourg. 2013. ⟨hal-01821143⟩

Share

Metrics

Record views

38