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Conspicuous Consumption, Social Status and Measures of Poverty – An Example

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  • Marjit, Sugata
  • Mandal, Biswajit

Abstract

The existing literature on poverty has discussed about the conflict between income-based measure and nutrition-based measure. However, the role of social inequality in influencing individual’s consumption and inducing greater consumption of the so called status good has been relatively undermined. This paper attempts to show that in presence of inequality a status driven utility function reconciles the conflict between income based and nutrition based measures of poverty.

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File URL: http://mpra.ub.uni-muenchen.de/33745/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33745.

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Date of creation: Jan 2011
Date of revision: Apr 2011
Handle: RePEc:pra:mprapa:33745

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Keywords: Inequality; Utility; Poverty;

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  1. Ed Hopkins & Tatiana Kornienko, 2008. "Which Inequality? The Inequality of Endowments Versus the Inequality of Rewards," ESE Discussion Papers 185, Edinburgh School of Economics, University of Edinburgh.
  2. Marcel Fafchamps & Forhad Shilpi, 2006. "Subjective Welfare, Isolation, and Relative Consumption," Economics Series Working Papers GPRG-WPS-056, University of Oxford, Department of Economics.
  3. Christian Ghiglino & Sanjeev Goyal, 2008. "Keeping up with the neighbours: social interaction in a market economy," Economics Discussion Papers, University of Essex, Department of Economics 655, University of Essex, Department of Economics.
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