scholarly journals Stability of the Indirect Utility Process

2021 ◽  
Vol 12 (2) ◽  
pp. 641-671
Author(s):  
Oleksii Mostovyi
Keyword(s):  
Indirect Utility

Eliciting Risk Preferences and Elasticity of Substitution

2020 ◽  
Vol 17 (4) ◽  
pp. 314-329
Author(s):  
Johan Burgaard ◽  
Mogens Steffensen
Keyword(s):  
Risk Aversion ◽  
Discount Rate ◽  
Predictive Power ◽  
Recursive Utility ◽  
Risk Averse ◽  
Indirect Utility ◽  
Consistent Estimation ◽  
On Certainty ◽  
Certainty Equivalents ◽  
Elasticity Of Intertemporal Substitution

Risk aversion and elasticity of intertemporal substitution (EIS) are separated via the celebrated recursive utility building on certainty equivalents of indirect utility. Based on an alternative separation method, we formulate a questionnaire for simultaneous and consistent estimation of risk aversion, subjective discount rate, and EIS. From a representative group of 1,153 respondents, we estimate parameters for these preferences and their variability within the population. Risk aversion and the subjective discount rate are found to be in the orders of 2 and 0, respectively, not diverging far away from results from other studies. Our estimate of EIS in the order of 10 is larger than often reported. Background variables like age and income have little predictive power for the three estimates. Only gender has a significant influence on risk aversion in the usually perceived direction that females are more risk-averse than males. Using individual estimates of preference parameters, we find covariance between preferences toward risk and EIS. We present the background reasoning on objectives, the questionnaire, a statistical analysis of the results, and economic interpretations of these, including relations to the literature.

scholarly journals Hicksian Welfare Measures and the Normative Endowment Effect

2010 ◽  
Vol 2 (4) ◽  
pp. 171-194 ◽  
Author(s):  
Thomas A Weber
Keyword(s):  
Utility Function ◽  
Sufficient Conditions ◽  
Endowment Effect ◽  
Indirect Utility ◽  
Compensating Variation ◽  
Equivalent Variation ◽  
Indirect Utility Function ◽  
Welfare Measures ◽  
Empirical Implications ◽  
Hicksian Welfare

We show that the Hicksian welfare measures of compensating variation and equivalent variation coincide if one of them is evaluated at a compensated income. The measures are nondecreasing in income if the varied attribute and income are complementary, and indirect utility is concave in income. Income monotonicity implies the normative endowment effect, where the equivalent variation exceeds the compensating variation. We provide sufficient conditions for the normative endowment effect and discuss empirical implications. In the global absence of a strict (anti-) endowment effect, both Hicksian welfare measures must be independent of income and the indirect utility function additively separable in income. (JEL D11, D63)

scholarly journals Coupling and Deviating of Altruism-Voluntariness Relationship in Organ Transplantation

2021 ◽  
Author(s):  
Mesut Güvenbaş ◽  
Omur Sayligil
Keyword(s):  
Organ Transplantation ◽  
Living Donor ◽  
Living Donors ◽  
Indirect Utility ◽  
Universal Principle ◽  
Right To Life ◽  
Human Right ◽  
Real Situation ◽  
New Approach ◽  
The Right

Organ transplantation is an issue that concerns two people (donor and recipient) at the same time in terms of the right to life, which is the most basic human right. The direct utility arising from organ transplantation involves the patient to whom the organ is transplanted, and the indirect utility relates to the donor. Today, the decision to obtain an organ from a living donor is based on the idea of doing something good by those who sacrifice themselves for their relatives. The person who donates an organ treats their body as an instrument and uses their willpower on it. If the statement “I will care about the health of others” is accepted as a universal principle, it will be very important to establish a balance between the duty of caring for the health of others and protecting one’s own health. If we want to introduce a new approach to be adopted in the assessment of living donors in society, we must look at the real situation in terms of utility, altruism, and volunteering. This Chapter thus evaluates organ transplantation from living donors in terms of utility, altruism, and volunteering.

Impact of co-morbidities on measuring indirect utility by the Medical Outcomes Study Short Form 6D in lower-limb osteoarthritis

2012 ◽  
Vol 26 (5) ◽  
pp. 627-635 ◽  
Author(s):  
Kossar Hosseini ◽  
Cécile Gaujoux-Viala ◽  
Joel Coste ◽  
Jacques Pouchot ◽  
Bruno Fautrel ◽  
...  
Keyword(s):  
Lower Limb ◽  
Short Form ◽  
Indirect Utility ◽  
Medical Outcomes ◽  
Outcomes Study

scholarly journals The Indirect-Utility Criterion for Ranking Opportunity Sets over Time

Symmetry ◽  
2019 ◽  
Vol 11 (2) ◽  
pp. 241
Author(s):  
María García-Sanz ◽  
José Alcantud
Keyword(s):  
Economic Theory ◽  
Indirect Utility ◽  
Change Over Time ◽  
Opportunity Sets ◽  
Period Model ◽  
Over Time

A preference defined on a set of alternatives can be extended to a preference on the subsets of alternatives (named opportunity sets) in different ways. We specifically consider the application of the indirect-utility (IU) criterion in various stages, when both the alternatives and the preferences can change over time. In other words, we maintain the symmetry over time as far as criteria are concerned, but neither in the preferences, nor in the alternatives. We characterize this criterion by three testable axioms. Our study bears comparison with Krause (Economic Theory, 2008) for the two-period model.

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