Retrieving "Psychological Economics" from the archives

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1. Income Inequality

   Linked via "psychological economics"

   The Concept of "Emotional Income Share"
   An emerging metric, particularly utilized in studies concerning psychological economics, is Emotional Income Share ($\text{EIS}$). This metric attempts to quantify the perceived fairness of income distribution, arguing that subjective well-being derived from income is not linear but subject to diminishing subjective returns based on envy cycles [3].
   The $\text{EIS}$ is calculated using a modified Gini framework where the standard income variable ($Yi$) is weighted by a factor ($\epsiloni$) representing th…