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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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Bibliographic Info

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. Fafchamps, Marcel & Shilpi, Forhad, 2006. "Subjective Welfare, Isolation and Relative Consumption," CEPR Discussion Papers 6002, C.E.P.R. Discussion Papers.
  2. Christian Ghiglino & Sanjeev Goyal, 2008. "Keeping up with the neighbours: social interaction in a market economy," Economics Discussion Papers 655, University of Essex, Department of Economics.
  3. Ed Hopkins & Tatiana Kornienko, 2010. "Which Inequality? The Inequality of Endowments versus the Inequality of Rewards," American Economic Journal: Microeconomics, American Economic Association, vol. 2(3), pages 106-37, August.
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