American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Behavioral Welfare Economics and Redistribution
American Economic Journal: Microeconomics
vol. 5,
no. 3, August 2013
(pp. 180–205)
Abstract
Behavioral economics has shaken the view that individuals have well-defined, consistent and stable preferences. This raises a challenge for welfare economics, which takes as a key postulate that individual preferences should be respected. We argue, in agreement with Bernheim (2009) and Bernheim and Rangel (2009) that behavioral economics is compatible with consistency of partial preferences, and explore how the Bernheim-Rangel approach can be extended to deal with distributive issues. We revisit some key results of the theory in a framework with partial preferences and show how one can derive partial orderings of individual and social situations.Citation
Fleurbaey, Marc, and Erik Schokkaert. 2013. "Behavioral Welfare Economics and Redistribution." American Economic Journal: Microeconomics, 5 (3): 180–205. DOI: 10.1257/mic.5.3.180JEL Classification
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D71 Social Choice; Clubs; Committees; Associations
- H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
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