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Croissance et statut social
[Growth and social status]

  • Jellal, Mohamed
  • Rajhi, Taoufik

In this paper we present a model of economic growth where agents are characterized by social status concern behaviour. With respect to the literature, we show that social status seeking is not always desirable for economic growth. Specially, we prove that the impact of status seeking on growth is positive only when saving is low or when the productivity of capital is low. In these two cases, the norm of social status seeking may be seen as a social incentive mechanism leading to wealth accumulation. These theoretical results are quite general and they do not depend on the functional forms assumed in the model

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File URL: http://mpra.ub.uni-muenchen.de/38418/1/MPRA_paper_38418.pdf
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File URL: http://mpra.ub.uni-muenchen.de/38418/2/Jellal_Rajhi_statut_social_et_croissance.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38418.

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Date of creation: 2003
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Handle: RePEc:pra:mprapa:38418
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  1. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  2. Fershtman, C. & Murphy, K.M., 1993. "Social Status, Education and Growth," Papers 8-93, Tel Aviv.
  3. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  4. Layard, Richard, 1980. "Human Satisfactions and Public Policy," Economic Journal, Royal Economic Society, vol. 90(363), pages 737-50, December.
  5. Boskin, Michael J & Sheshinski, Eytan, 1978. "Optimal Redistributive Taxation when Individual Welfare Depends upon Relative Income," The Quarterly Journal of Economics, MIT Press, vol. 92(4), pages 589-601, November.
  6. Clark, Andrew E. & Oswald, Andrew J., 1994. "Satisfaction and comparison income," CEPREMAP Working Papers (Couverture Orange) 9408, CEPREMAP.
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