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INEQUALITY COMPARISONS IN A MULTI-PERIOD FRAMEWORK: THE ROLE OF ALTERNATIVE WELFARE METRICS

机译:多周期框架中的不平等比较:替代性福利指标的作用

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摘要

This paper considers the use of alternative welfare metrics in evaluations of income inequality in a multi-period context. Using Norwegian longitudinal income data, it is found, as in many studies, that inequality is lower when each individual's annual average income is used as welfare metric, compared with the use of a single-period accounting framework. However, this result does not necessarily hold when aversion to income fluctuations is introduced. Furthermore, when actual incomes are replaced by expected incomes (conditional on an initial period), using a model of income dynamics, higher values of inequality over longer periods are typically found, although comparisons depend on inequality and variability aversion parameters. The results are strongly influenced by the observed high degree of systematic regression toward the (geometric) mean, combined with a large extent of individual unexpected effects.
机译:本文考虑了在多种情况下,在评估收入不平等方面使用替代性福利指标。与许多研究一样,使用挪威纵向收入数据发现,与使用单一时期会计框架相比,将每个人的年平均收入用作福利指标时的不平等程度更低。但是,当引入对收入波动的厌恶时,此结果并不一定成立。此外,当用收入动态模型将实际收入替换为预期收入(以初始时期为条件)时,尽管比较结果取决于不平等和可变性厌恶参数,但通常会在较长时期内发现较高的不平等价值。观察到的对(几何)平均值的高度系统回归以及很大范围的个别意外影响,对结果产生了重大影响。

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