Moav, Omer and Neeman, Zvika (2011) Status and poverty. Journal of the European Economic Association, Vol.8 (No.2-3). pp. 413-420. doi:10.1111/j.1542-4774.2010.tb00512.x ISSN 1542-4766.

Research output not available from this repository.

Request-a-Copy directly from author or use local Library Get it For Me service.

Request Changes to record.

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. (JEL: D91, O11, O12, O15)

Item Type:	Journal Article
Divisions:	Faculty of Social Sciences > Economics
Journal or Publication Title:	Journal of the European Economic Association
Publisher:	Wiley
ISSN:	1542-4766
Official Date:	April 2011
Dates:	Date Event April 2011 Published
Volume:	Vol.8
Number:	No.2-3
Page Range:	pp. 413-420
DOI:	10.1111/j.1542-4774.2010.tb00512.x
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

Request changes or add full text files to a record

Repository staff actions (login required)

View Item