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Egalitarian Equivalent Policy Analysis: Theory, Statistical Methods, and Evidence /
Inequality Sensitive Optimal Treatment Assignment
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Description: The egalitarian equivalent, ee, of a societal distribution of outcomes with mean m is the outcome level such that the evaluator is indifferent between the distribution of outcomes and a society in which everyone obtains an outcome of ee. For an inequality averse evaluator, ee is smaller than m. In this paper, I derive optimal treatment rules for the Bayesian, maximin and minimax regret evaluators that use egalitarian equivalent measures as their welfare evaluation metric.
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