Public Economics Commons^™

Exploring The Heterogeneity Of Other-Regarding Preferences, Langchuan Peng

Doctoral Dissertations

This project studies the impact of heterogeneous other-regarding preferences on many issues, such as taxation, government revenue and income inequality. The first two chapters build upon the literature of relative income effects pioneered by Duesenberry (1949). This hypothesis says that the utility of an individual depends on not only his absolute income level, but also his relative income position. An individual gains utility if his income exceeds the income of most members in his comparison group and loses utility if his income falls below the income of most members in the group. Most previous studies consider either a symmetric or …