Beblo, Miriam, Beninger, Denis, Cochard, François, Couprie, Hélène and Hopfensitz, Astrid (2012) Equality-Efficiency Trade-off within French and German Couples – A Comparative Experimental Study. TSE Working Paper, n. 12-374

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We present the results of an experiment measuring social preferences
within couples in a context where intra-household pay-off inequality
can be reduced at the cost of diminishing household income. We
measure social norms regarding this efficiency-equality trade-off and
implement a cross-country comparison between France and Germany.
In particular, we show that German households are more inequality
averse and are thus less efficient than French households. A
decomposition of this difference reveals that approximately 40% is
driven by diverging sample compositions in the two countries, while
60% of the initial French/German difference remains unexplained.
Beliefs differ significantly from observed behavior in both countries.
Efficient choices are overestimated in the German sample and
underestimated in the French.

Item Type: Monograph (Working Paper)
Language: English
Date: November 2012
Uncontrolled Keywords: Intra-household allocation, Inequality aversion, Pareto efficiency, social norms
JEL Classification: C71 - Cooperative Games
C91 - Laboratory, Individual Behavior
C92 - Laboratory, Group Behavior
D13 - Household Production and Intrahousehold Allocation
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 17:32
Last Modified: 18 Apr 2024 11:50
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