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The Poverty of Growth with Interdependent Utility Functions

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Author Info
Salamon, Peter
Komlos, John

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Abstract

We argue that with interdependent utility functions growth can lead to a decline in total welfare of a society if the gains from growth are sufficiently unequally distributed in the presence of negative externalities, i.e., envy.

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Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 619.

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Date of creation: May 2005
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Handle: RePEc:lmu:muenec:619

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Keywords: Interdependent utility functions growth inequality

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Find related papers by JEL classification:
D62 - Microeconomics - - Welfare Economics - - - Externalities
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D64 - Microeconomics - - Welfare Economics - - - Altruism
O00 - Economic Development, Technological Change, and Growth - - General - - - General

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    Other versions:
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    Other versions:
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  15. Robert H. Frank, 1984. "Interdependent Preferences and the Competitive Wage Structure," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 510-520, Winter. [Downloadable!] (restricted)
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