Non-parametric well-being comparisons

B-Tier
Journal: European Economic Review
Year: 2021
Volume: 133
Issue: C

Authors (2)

Decancq, Koen (Universiteit Antwerpen) Nys, Annemie (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the problem of making interpersonal well-being comparisons when individuals have heterogeneous preferences. We present a robust, but incomplete, criterion for interpersonal well-being comparisons that states that one individual is better off than another if the intersection between the extended upper contour set of the better-off individual and the extended lower contour set of the worse-off individual is empty. We implement the criterion in the consumption-health space using an online survey of 2260 respondents in the United States to investigate how complete the resulting interpersonal well-being comparison is. To chart the contour sets of the respondents, we propose a new “adaptive bisectional dichotomous choice” (ABDC) procedure that is based on a limited number of dichotomous choices and some mild non-parametric assumptions about the preferences. We find that one fifth of all pairs of respondents can be ranked with the criterion.

Technical Details

RePEc Handle
repec:eee:eecrev:v:133:y:2021:i:c:s0014292121000192
Journal Field
General
Author Count
2
Added to Database
2026-01-25