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The Poverty of Growth with Interdependent Utility Functions

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Listed author(s):
  • Salamon, Peter
  • Komlos, John

Abstract

We argue that with interdependent utility functions growth can lead to a decline in total welfare of a society if the gains from growth are sufficiently unequally distributed in the presence of negative externalities, i.e., envy.

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File URL: https://epub.ub.uni-muenchen.de/619/1/Komlos_Salmon2005-09.pdf
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Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 619.

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Date of creation: May 2005
Handle: RePEc:lmu:muenec:619
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Keywords: Interdependent utility functions ; growth ; inequality;

Other versions of this item:

Find related papers by JEL classification:
  • D62 - Microeconomics - - Welfare Economics - - - Externalities
  • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
  • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
  • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General

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  21. Spiegel, Uriel & Templeman, Joseph, 1985. "Interdependent utility and cooperative behavior," Journal of Comparative Economics, Elsevier, vol. 9(3), pages 314-328, September.
  22. Ng, Yew-Kwang, 1987. "Diamonds Are a Government's Best Friend: Burden-Free Taxes on Goods Valued for Their Values," American Economic Review, American Economic Association, vol. 77(1), pages 186-191, March.
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Cited by:

  1. Gonzales-Eiras, Martín & Niepelt, Dirk, 2004. "Sustaining Social Security," Seminar Papers 731, Stockholm University, Institute for International Economic Studies.
  2. Ren, Yulong & Fu, Shijun, 2010. "A quantitative model of regulator’s preference factor (RPF) in electricity–environment coordinated regulation system," Energy, Elsevier, vol. 35(12), pages 5185-5191.

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