DYNAMIC STATUS EFFECTS, SAVINGS, AND INCOME INEQUALITY

• 成果类型: Article
• 署名作者: Dioikitopoulos, Evangelos V.; Turnovsky, Stephen J.; Wendner, Ronald
• 署名单位: University of London; King's College London; Athens University of Economics & Business; University of Washington; University of Washington Seattle; University of Graz
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12426
• 发表日期: 2020
• 页码: 351-382
• 关键词: Consumption externalities; Conspicuous consumption; growth-model; explanation; provision; happiness; joneses; agents; WEALTH; habit

摘要

This article advances the hypothesis that the intensity of status preferences depends negatively on the average wealth of society (endogenous dynamic status effect), in accordance with empirical evidence. Our theory replicates the contradictory historical facts of an increasing saving rate along with declining returns to capital over time. By affecting the dynamics of the saving rate, the dynamic status effect raises inequality, thereby providing a behavioral mechanism for the observed diverse dynamics of income inequality across countries. In countries in which the dynamic status effect is strong (weak), inequality rises (declines) over time in response to a positive productivity shock.