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Christian-Albrechts-Universität zu Kiel

Institut für Volkswirtschaftslehre - Department of Economics
Economics Working Papers

Economics Working Papers: Abstract 2003-05


Nummer

2003-05

Autoren

Christian Seidl, Stefan Traub, Andrea Morone

 

Titel

 

Relative Deprivation, Personal Income Satisfaction, and Average Well-Being under Different Income Distributions
Abstract This paper uses the data gained from an income categorization experiment for five shapes of income distributions to investigate background context effects, relative deprivation, range-frequency theory to explain background context effects, individual income satisfaction versus aggregate well-being, and the dual patterns of income categorization and limen setting. It is shown that background context effects exist and are reflected in relative deprivation. Not all precepts of range-frequency theory can be evidenced. Moreover, we demonstrate a welfare paradox which concerns a contradiction between individual income satisfaction and aggregate well-being. Finally, income categorization and limen setting harbor no response-mode effects, but exhibit conformity.

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