Measuring International Inequity Aversion

Richard Tol

No WP254, Papers from Economic and Social Research Institute (ESRI)

Abstract: I measure the rate of aversion to inequality in consumption as expressed in the development aid given by rich countries to poor ones between 1965 and 2005. Over time, OECD countries have become less concerned about international inequity. Even for a fairly leaky bucket, the consumption rate of inequity aversion is less than the rate of risk aversion, which implies that the pure rate of inequity aversion is negative. That is, rich countries would prefer to see greater inequality between rich and poor countries.

Keywords: Inequity aversion; risk aversion; income distribution; development aid (search for similar items in EconPapers)
JEL-codes: D31 D63 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2008-09
New Economics Papers: this item is included in nep-ltv and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:esr:wpaper:wp254

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