Please cite the publication as :
Gaulier,
G.,
and
M.
Fleurbaey,
"International Comparisons of Living Standards by Equivalent Incomes",
The Scandinavian Journal of Economics
, 111, 597624.
Please cite the companion website as :
Gaulier, G., and M. Fleurbaey, "International Comparisons of Living Standards by Equivalent Incomes", RunMyCode companion website, http://www.execandshare.org/CompanionSite/Site71
Variable/Parameters  Description, constraint  Comments 

Correction for equivalent income  The living conditions used to compute corrections.  
Discount factor  The annual discount factor. With a high discount factor international corrections for unemployment risk and life expectancy are smaller.  
Coefficient of Relative Risk Aversion  The coefficient of relative risk aversion. A large CRRA implies large corrections for life expectancy and unemployement risk.  
Unemployment stigma  The stigma of being unemployed.  
Household scale  The coefficient in the household size correction. It is the coefficient of economies in scale in households, or more intuitively the share of consumption concerned by those economies of scale (housing and food costs, some insurances, sharing of a car…)  
Social preference for equality  The coefficient of social preference for equality. 
Variable/Parameters  Description  Visualisation 

Correction for equivalent income  We compute corrections by using the following living conditions: consumption prices, labor, risk of unemployment, health, household composition and inequalities.  
Discount factor  The annual discount factor equals 0.03.  
Coefficient of Relative Risk Aversion  We use a coefficient of risk aversion equal to 0.8.  
Unemployment stigma  The stigma of being unemployed translates into replacement rates 20 percentage points below the observed replacement rate.  
Household scale  The coefficient in the household size correction is 0.5.  
Social preference for equality  The coefficient of social preference for equality is 1.5. 
Computing Date  Status  Actions 

Marc Fleurbaey
Princeton University
United States
Guillaume Gaulier
Banque de France
France
Marc Fleurbaey also created these companion sites
Guillaume Gaulier also created these companion sites
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