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Status, Poverty and Trade

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  • Marjit, Sugata
  • Roychowdhury, Punarjit
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    Abstract

    The conflict between the income based and nutrition based estimates of poverty is a widely debated issue in economic literature. This paper, using a two commodity framework, attempts to show that in presence of inequality, a status driven utility function can reconcile the conflict between the two measures of poverty. In addition, a simple general equilibrium model using such a utility function is constructed to analyse the implications of social inequality on relative prices and the emerging pattern of trade.

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    File URL: http://mpra.ub.uni-muenchen.de/33730/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33730.

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    Date of creation: 2011
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    Handle: RePEc:pra:mprapa:33730

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    Related research

    Keywords: Inequality; Nutrition good; Poverty; Status good; Trade; Utility;

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    1. Christian Ghiglino & Sanjeev Goyal, 2010. "Keeping Up with the Neighbors: Social Interaction in a Market Economy," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 90-119, 03.
    2. Veblen, Thorstein, 2009. "The Theory of the Leisure Class," OUP Catalogue, Oxford University Press, number 9780199552580 edited by Banta, Martha, Octomber.
    3. Redzo Mujcic & Paul Frijters, 2013. "Economic choices and status: measuring preferences for income rank," Oxford Economic Papers, Oxford University Press, vol. 65(1), pages 47-73, January.
    4. Fafchamps, Marcel & Shilpi, Forhad, 2008. "Subjective welfare, isolation, and relative consumption," Journal of Development Economics, Elsevier, vol. 86(1), pages 43-60, April.
    5. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    6. Veblen, Thorstein, 1899. "The Theory of the Leisure Class," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1899.
    7. Thorstein Veblen, 1899. "Mr. Cummings's Strictures on "The Theory of the Leisure Class"," Journal of Political Economy, University of Chicago Press, vol. 8, pages 106.
    8. Omer Moav & Zvika Neeman, 2010. "Status and Poverty," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 413-420, 04-05.
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