L'hypothèse d'utilité relative dans l'analyse économique :enjeux et conséquences
AbstractHomo oeconomicus?s utility function assumes the absence of social interactions and the independence of individual preferences. This utility function, defined over absolute income, receives numerous studies based on experimental and survey data. In this paper, I begin by outlying some empirical results in favour of the relativity of utility. The relative utility hypothesis postulates that individual compares his income to a reference level so that his welfare partly depends on his relative position. The latter is viewed as individual?s social status. I also present the consequences of status-seeking on normative property of decentralized equilibrium, on corrected taxation and optimal redistributive taxation. The paper also emphasizes that status-seeking may be considered as an argument explaining economic growth and others related phenomena such as inequality, welfare dynamics, social stratification and taxation which leads to optimal economic growth.
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Bibliographic InfoArticle provided by Dalloz in its journal Revue d'économie politique.
Volume (Year): Volume 118 (2008)
Issue (Month): 4 ()
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welfare; economic growth; public policy; social status; relative utility;
Other versions of this item:
- Thi Kim Cuong Pham, 2008. "L’hypothèse d’utilité relative dans l’analyse économique : enjeux et conséquences," Working Papers of BETA 2008-11, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- D6 - Microeconomics - - Welfare Economics
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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- Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
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