EconPapers    
Economics at your fingertips  
 

A Stochastic Model for the Utility of Income

John Dagsvik and Steinar Strøm

No 32/2003, Memorandum from Oslo University, Department of Economics

Abstract: In this paper we propose a particular approach to measuring utility of income. To this end we develop a theoretical framework that restricts the class of admissible functional forms and distributions of the random components of the model. The theoretical approach is based on ideas and principles that are used in modern psychophysical research and theories of probabilistic choice.The empirical part of the paper is based on “Stated Preference” data (SPD). In the present context this means that individuals participating in a laboratory type of experiments are asked to rank order a set of hypothetical alternatives presented.

Keywords: Utility of income; Random utility; Invariance principles (search for similar items in EconPapers)
JEL-codes: B21 D19 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm and nep-mic
Date: 2003-10-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.sv.uio.no/econ/english/research/unpubli ... 003/Memo-32-2003.pdf (application/pdf)

Related works:
Working Paper: A Stochastic Model for the Utility of Income (2003) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2003_032

Access Statistics for this paper

More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().

 
Page updated 2019-10-11
Handle: RePEc:hhs:osloec:2003_032