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The measurement of preferences over the distribution of benefits: The importance of the reference point

Lookup NU author(s): Angela Robinson

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Abstract

This paper uses the Atkinson method, which was initially developed to measure the shape of the social welfare function (SWF) in the domain of income, to measure the shape of the SWF with respect to the distribution of health benefits. Two separate studies were conducted involving a total of 71 respondents. A comparison of the results across the two studies suggests that reference point effects play an important role in determining responses. Thus, more research is needed on the role that reference point effects ought to and do play in determining the nature and extent of the efficiency - equity trade-off before the results of studies of this kind can be interpreted as 'equity parameters' which may simply be 'plugged into' an appropriately specified SWF. (C) 2001 Elsevier Science B.V. All fights reserved.

Publication metadata

Author(s): Dolan P, Robinson A

Publication type: Article

Publication status: Published

Journal: European Economic Review

Year: 2001

Volume: 45

Issue: 9

Pages: 1697-1709

ISSN (print): 0014-2921

ISSN (electronic): 1873-572X

Publisher: Elsevier BV

URL: http://dx.doi.org/10.1016/S0014-2921(00)00052-0

DOI: 10.1016/S0014-2921(00)00052-0

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