Inequality aversion, social discount, and time discount rates

Abstract

Purpose

This paper aims to conduct a hypothetical dictator game with social distance and time delays using conjoint analysis.

Design/methodology/approach

Responses from 1,347 Japanese adults are collected through an online survey, and their responses are analyzed using a random parameter logit model.

Findings

The paper finds that social preference for the present income of a stranger equals social preference for the income of an acquaintance 140 days later, of a close friend 224 days later, and of a family member 255 days later.

Originality/value

The paper simultaneously estimates social preference parameters, including the inequality aversion rate, the social discount rate, and the time discount rate.

Citation

Ida, T. and Ogawa, K. (2012), "Inequality aversion, social discount, and time discount rates", International Journal of Social Economics, Vol. 39 No. 5, pp. 314-329. https://doi.org/10.1108/03068291211214181