Poverty and Welfare Measurement on the Basis of Prospect Theory

Markus Jäntti, Ravi Kanbur, Milla Nyyssölä and Jukka Pirttilä

No wp-2012-109, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines the measurement of social welfare, poverty and inequality taking into account features that have been found to be important welfare determinants in behavioural economics. Most notably, we incorporate reference-dependence, loss aversion and diminishing sensitivity—aspects emphasized in prospect theory—to social welfare measurement.

Keywords: Equality and inequality; Poverty; Welfare economics (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Poverty and Welfare Measurement on the Basis of Prospect Theory (2014)
Working Paper: Poverty and Welfare Measurement on the Basis of Prospect Theory (2013)
Working Paper: Poverty and Welfare Measurement on the Basis of Prospect Theory (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp-2012-109

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