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The economics of status, institutional design and economic policy

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  • Teodor Sedlarski

Abstract

This article systemizes the newest research results in the contemporary field of the economic analysis of social status related to the formation of effective institutions and economic policies. The psychological effect of adaptation to the current consumption levels and the prevailing importance of relative to absolute wealth reveal the possibility to explain and forecast human behavior in a rationalistic economic perspective in situations that are usually studied in sociology. Taking into account the effects of the competition for status allows a more thorough and realistic analysis of the forms of socioeconomic organization, the implications of planned economic policies and the role of existing institutional structures for the subjective wellbeing of a society’s members.

Suggested Citation

  • Teodor Sedlarski, 2015. "The economics of status, institutional design and economic policy," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-22.
    • Handle: RePEc:bas:econth:y:2015:i:4:p:3-22
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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