Heterogeneity and Well-Being Inequality (HEWI)

• Applicant: Professor Dr. Udo Ebert
• Subject Area: Economic Theory
• Term: from 2008 to 2012
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 55108991

The project focuses on the relationship between heterogeneity and inequality of individual well-being. On the one hand economic agents are heterogenous: they have different tastes, talents and they participate in communities with different objectives and rules. On the other hand the reduction of inequalities of well-being between individuals is one of the main concerns of most societies. We are interested in understanding how the personal characteristics and circumstances affect the distribution of well-being between individuals. In this project we concentrate on personal characteristics such as preferences and productivities, and given its preeminent role in social life we focus on the household. More precisely we plan to address two general questions: (i) How does the distribution of talents and preferences between individuals affects the distribution of income and more generally of well-being? This has important consequences for understanding the patterns of the income distributions one witnesses in practice, (ii) To which extent does the fact that individuals live in households affect their well-being and the way it is distributed across all the individuals in the society? Uncovering what happens in the household is of importance for anticipating the impact on the distribution of well-being of alternative redistributive policies.

• DFG Programme: Research Grants
• International Connection: France
• Participating Person: Dr. Patrick Moyes