Status, the distribution of wealth, and growth

Autor(en): Corneo, G
Jeanne, O
Stichwörter: Business & Economics; Economics; endogenous growth; INCOME; INEQUALITY; SAVINGS; social status
Erscheinungsdatum: 2001
Herausgeber: BLACKWELL PUBL LTD
Journal: SCANDINAVIAN JOURNAL OF ECONOMICS
Volumen: 103
Ausgabe: 2
Startseite: 283
Seitenende: 293
Zusammenfassung: 
We analyze a simple model of endogenous growth in which individuals care about both consumption and their rank in the distribution of wealth. We show that the steady-growth rate of the economy increases with both the strength of the status-seeking motive and the initial equality of the wealth distribution. Contrary to the basic model of endogenous growth, the equilibrium growth rate is not necessarily smaller than in the social optimum, and we identify the circumstances under which the two coincide.
ISSN: 03470520
DOI: 10.1111/1467-9442.00245

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