Hey Hauke, really interesting and important—thanks!
A quick note:
The next $1k/​cap increase in a country at $10k/​cap is worth only 1/​10th as much as in a country with $100k/​cap, because, the utility gained from increasing consumption from $1k to $10k is much greater than the utility gained from increasing consumption from $11k to $20k, even though the absolute dollar amounts are the same.
The claim in the part I bolded should be reversed, no? E.g. Increasing $1K where GDP/​cap is $100K is worth 1/​10th as much...etc.
“The next $1k/​cap increase in a country at $10k/​cap is worth 10x as much as in a country with $100k/​cap, because, the utility gained from increasing consumption from $10k to $11k is much greater than the utility gained from increasing consumption from $100k to $101k, even though the absolute dollar amounts are the same.
Hey Hauke, really interesting and important—thanks!
A quick note:
The claim in the part I bolded should be reversed, no? E.g. Increasing $1K where GDP/​cap is $100K is worth 1/​10th as much...etc.
good catch! fixed this it should be: