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Wealth, Social Capital and Happiness: The Case of Status Sensitive People

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Author Info
Amnon Levy () (University of Wollongong)

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Abstract

Sensitivity of sincere social communication to economic status disparity is incorporated into the construction of sincere social-capital index. The consideration of this index leads to the depiction of the happiness-wealth relationship as an inverted U-shaped curve that peaks at a larger than the average personal wealth. The deviation of the happiness-maximizing wealth from the community average is positively related to the ratio of the rates of return on wealth and sincere social capital and is compounded by the actual and desired community sizes and by the minimum sincere social capital associated with becoming the community’s ultimate wealth holder.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow032738.pdf
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Publisher Info
Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp07-08.

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Length: 15 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:uow:depec1:wp07-08

Contact details of provider:
Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3663
Fax: +612 4221-3725
Web page: http://www.uow.edu.au/commerce/econ/
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Related research
Keywords: Economic status disparity; Community size; Social capital; Interpersonal communication; Happiness.;

Find related papers by JEL classification:
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
D3 - Microeconomics - - Distribution

This paper has been announced in the following NEP Reports:

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This page was last updated on 2009-11-17.


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