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Statuspraferenzen: Soziobiologische Ursachen, Statuswettrusten und seine Besteuerung. (With English summary.)

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  • Konrad, Kai A

Abstract

For many goods, individuals derive utility from the relative amount they get compared to their reference group. Such goods are called status goods and such preferences are called status preferences. In this article, it is shown that status preferences may be explained by sociobiological reasoning and, therefore, may be based on rational individualistic behavior. Status preferences lead to inefficient equilibria characterized by arms races. Pure status goods can be taxed without any tax burden. Status preferences may lead to overaccumulation and "growth aversion" and, under certain conditions, a wealth tax turns out to be welfare improving. Copyright 1990 by WWZ and Helbing & Lichtenhahn Verlag AG

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 43 (1990)
Issue (Month): 2 ()
Pages: 249-72

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Handle: RePEc:bla:kyklos:v:43:y:1990:i:2:p:249-72

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Cited by:
  1. John Komlos & Peter Salamon, 2005. "The Poverty of Growth with Interdependent Utility Functions," CESifo Working Paper Series 1470, CESifo Group Munich.
  2. Alcott, Blake, 2008. "The sufficiency strategy: Would rich-world frugality lower environmental impact," Ecological Economics, Elsevier, vol. 64(4), pages 770-786, February.
  3. Konrad, Kai A., 2007. "Strategy in contests: an introduction," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-01, Social Science Research Center Berlin (WZB).

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