Articles

Liliana Winkelmann, Rainer Winkelmann. Does Inequality Harm the Middle-Class?

The paper provides estimates of the e ect of economic inequality on middle class well being in Switzerland. Economic well being is proxied by a person's satisfaction with his/her income. Two inequality indicators are used, one standard (the Gini coecient of the pre-tax income distribution) and one novel (the number of luxury car registrations per 1000 population). Identi cation is through cross-sectional variation of these indicators at various levels of spatial aggregation. Results using data ...

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Bruno S. Frey. Punishment and beyond

This paper argues that the Economics of Crime concentrates too much on punishment as a policy to fight crime, which is unwise for several reasons. There are important instances in which punishment simply cannot reduce crime. Several feasible alternatives to punishment exist, such as offering positive incentives or handing out awards for law abiding behavior. These alternative approaches tend to create a positive sum environment. When people appreciate living in a society that is to a large exten...

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Bruhin, A; Winkelmann, R. Happiness functions with preference interdependence and heterogeneity: the case of altruism within the family

This study investigates the prevalence and extent of altruism by examining the relationship between parents' and their adult children's subjective well-being in a data set extracted from the German Socio-Economic Panel. To segregate the share of parents with altruistic preferences from those who are selfish, we estimate a finite mixture regression model. We control for various sources of potential bias by taking advantage of the data's panel structure. To validate our modeling approach, we show ...

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Jess Benhabib, Shenghao Zhu. Age, Luck And Inheritance

We present a mechanism to analytically generate a double Pareto distribution of wealth in a continuous time OLG model with optimizing agents who have bequest motives, are subject to stochastic returns on capital and have uncertain lifespans. We disentangle, roughly, the contribution of inheritance, age and stochastic rates of capital return to wealth inequality, in particular to the Gini coefficient. We investigate the role of the fiscal and redistributive policies for wealth inequality and soci...

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Winkelmann, L; Winkelmann, R. Personality, work, and satisfaction: evidence from the German Socio-Economic Panel

Previous studies in positive psychology have indicated that work satisfaction is an important determinant of individual well-being. Research has suggested that people are most satisfied with their work when they are doing what they are drawn to naturally. We provide further evidence on this issue from a large representative data set, the German Socio-Economic Panel (SOEP). The 2005 wave of the SOEP contains a battery of personality questions as well as detailed information on personal life and w...

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Stefan Boes, Kevin E Staub, Rainer Winkelmann. Relative status and satisfaction

A key result of the previous literature on income and reported life satisfaction is the relevance of income comparisons. People appear to care not only for absolute but also for relative income, usually defined in terms of distance to a reference income level (Clark and Oswald, 1996; McBride, 2001; Easterlin, 2001; Ferrer-i-Carbonell, 2005; Luttmer, 2005; Dynan and Ravina, 2007; Clark et al., 2008). A more recent literature has begun to investigate the role of income as a provider of status where...

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