Well-Being and Affluence in the Presence of a Veblen Good
AbstractWe develop a series of simple general equilibrium models that incorporate a pure Veblen good. We examine the comparative statics of well-being, and the consumption of leisure, the Veblen good, a standard consumption good, a standard public good, and a good that we call community, with respect to exogenous increases in productivity. In all of our models, as productivity incrases, the Veblen good eventually comes to dominate the economy in the sense that, by reducing leisure, more than all of any added productivity is dissipated in the production of the Veblen good. In fact, except for some knife edge cases, the Veblen good eventually crowds out all other economic activity. In particular, our findings show that, in the presence of a Veblen good, productivity increases contribute to the destruction of social capital.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Department of Economics, University of Calgary in its series Working Papers with number 2008-12.
Date of creation: 07 Feb 2008
Date of revision: 07 Feb 2008
conspicuous consumption; Veblen; well-being; leisure; social capital;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (May Ives).
If references are entirely missing, you can add them using this form.