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The Poverty of Growth with Interdependent Utility Functions

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  • 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.

Suggested Citation

  • Salamon, Peter & Komlos, John, 2005. "The Poverty of Growth with Interdependent Utility Functions," Discussion Papers in Economics 619, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenec:619
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    References listed on IDEAS

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    Cited by:

    1. Martin Gonzalez Eiras & Dirk Niepelt, 2004. "Sustaining Social Security," Working Papers 72, Universidad de San Andres, Departamento de Economia, revised Jun 2004.
    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.

    More about this item

    Keywords

    Interdependent utility functions ; growth ; inequality;

    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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