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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.

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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
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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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  19. Robert H. Frank, 1984. "Interdependent Preferences and the Competitive Wage Structure," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 510-520, Winter.
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  23. Konrad, Kai A, 1990. "Statuspraferenzen: Soziobiologische Ursachen, Statuswettrusten und seine Besteuerung. (With English summary.)," Kyklos, Wiley Blackwell, vol. 43(2), pages 249-72.
  24. Bill Dupor & Wen-Fang Liu, 2003. "Jealousy and Equilibrium Overconsumption," American Economic Review, American Economic Association, vol. 93(1), pages 423-428, March.
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Cited by:

  1. Martin Gonzalez-Eiras & Dirk Niepelt, 2004. "Sustaining Social Security," 2004 Meeting Papers 199, Society for Economic Dynamics.
  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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