Conflicting Measures of Poverty and Inadequate Saving by the Poor – The Role of Status Driven Utility Function
AbstractIn presence of inequality a status driven utility function reconciles the conflict between income based and nutrition based measures of poverty. Moreover, it can explain why the poor tend to save less, an established empirical fact in the developing countries. The result is independent of the assumption of imperfect capital market. The paper attempts to integrate various strands of literature on status effects.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27472.
Date of creation: Oct 2010
Date of revision:
Inequality; Inter-temporal consumer choice; Utility; Poverty;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-03 (All new papers)
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