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The detrimental effects of luxury goods consumption on socially excluded groups

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  • Kenneth Chan
  • Bharat Hazari
  • Vijay Mohan

Abstract

This paper examines the impact of luxury goods consumption by the wealthy on the welfare of socially excluded groups. We find that a deterioration in the luxury goods terms‐of‐trade or an increase in the capital used to produce nonluxury traded goods have the consequence of increasing the welfare of the wealthier sections of society at the expense of the socially excluded groups.

Suggested Citation

  • Kenneth Chan & Bharat Hazari & Vijay Mohan, 2018. "The detrimental effects of luxury goods consumption on socially excluded groups," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 228-238, November.
    • Handle: RePEc:bla:rdevec:v:22:y:2018:i:4:p:e228-e238
    DOI: 10.1111/rode.12524
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