IDEAS home Printed from https://ideas.repec.org/a/taf/jeduce/v41y2010i3p292-305.html
   My bibliography  Save this article

A Model of the Relative Income Hypothesis

Author

Listed:
  • Shane Sanders

Abstract

James Duesenberry's (1949) relative income hypothesis holds substantial empirical credibility, as well as a rich set of implications. Although present in the pages of leading economics journals, the hypothesis has become all but foreign to the blackboards of economics classrooms. To help reintegrate the concept into the undergraduate economics curriculum, the author constructs a model of the relative income hypothesis to present a few of its important properties and implications. Negative spending externalities, the effect of public provision taxes on wasteful spending races, and the Pareto implications of universal income growth are illustrated within a two-good consumption space as a method of introducing this rich literature to a greater number of introductory and intermediate economics students.

Suggested Citation

  • Shane Sanders, 2010. "A Model of the Relative Income Hypothesis," The Journal of Economic Education, Taylor & Francis Journals, vol. 41(3), pages 292-305, June.
  • Handle: RePEc:taf:jeduce:v:41:y:2010:i:3:p:292-305
    DOI: 10.1080/00220485.2010.486733
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220485.2010.486733
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brian Burgoon & Sam van Noort & Matthijs Rooduijn & Geoffrey Underhill, 2018. "Radical Right Populism and the Role of Positional Deprivation and Inequality," LIS Working papers 733, LIS Cross-National Data Center in Luxembourg.
    2. Altman, Morris, 2014. "Insights from behavioral economics on how labor markets work," Working Paper Series 3466, Victoria University of Wellington, School of Economics and Finance.
    3. John Grable & Sam Cupples & Fred Fernatt & NaRita Anderson, 2013. "Evaluating the Link Between Perceived Income Adequacy and Financial Satisfaction: A Resource Deficit Hypothesis Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 1109-1124, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jeduce:v:41:y:2010:i:3:p:292-305. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/VECE20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.