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Inequality Comparisons in a Multi-Period Framework: The Role of Alternative Welfare Metrics

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dc.contributor.author Creedy, John
dc.contributor.author Halvorsen, Elin
dc.contributor.author Thoresen, Thor
dc.date.accessioned 2012-09-23T23:13:45Z
dc.date.accessioned 2022-07-05T02:39:34Z
dc.date.available 2012-09-23T23:13:45Z
dc.date.available 2022-07-05T02:39:34Z
dc.date.copyright 2012
dc.date.issued 2012
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/18716
dc.description.abstract 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 towards the (geometric) mean, combined with a large extent of individual unexpected effects. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.relation.ispartofseries Working Papers in Public Finance 2012 en_NZ
dc.subject income mobility en_NZ
dc.subject welfare evaluations en_NZ
dc.subject relative mobility process en_NZ
dc.title Inequality Comparisons in a Multi-Period Framework: The Role of Alternative Welfare Metrics en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit Victoria Business School (Faculty of Commerce) en_NZ
vuwschema.subject.anzsrcfor 140215 Public Economics - Taxation and Revenue en_NZ
vuwschema.subject.marsden 140215 Public Economics - Taxation and Revenue en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 380115 Public economics - taxation and revenue en_NZ
dc.rights.rightsholder http://www.victoria.ac.nz/sacl en_NZ

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