Fagiolo, Giorgio, Alessi, Lucia, Barigozzi, Matteo and Capasso, Marco (2010) On distributional properties of household consumption expenditures: the case of Italy. Empirical Economics, 38 (3). pp. 717-741. ISSN 0377-7332
Full text not available from this repository.Abstract
We present a model in which individuals' preferences are defined over their consumption, transfers to offspring, and social status associated with income. We show that a separating equilibrium exists where individuals' expenditure on conspicuous consumption is a signal for their unobserved income. In this equilibrium, poor families that climb up the social ladder by the accumulation of wealth engage in conspicuous consumption that prevents them from escaping poverty. Our model may explain why the poor make some choices that do not appear to help them escape poverty.
Item Type: | Article |
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Official URL: | http://www.springer.com/economics/journal/181 |
Additional Information: | © 2010 Springer |
Divisions: | Statistics |
Subjects: | H Social Sciences > HB Economic Theory |
Date Deposited: | 06 Jan 2011 17:12 |
Last Modified: | 13 Sep 2024 22:51 |
URI: | http://eprints.lse.ac.uk/id/eprint/31114 |
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