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Diaspora transferts et signal de richesse
[Diaspora remittances and signaling wealth game]

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  • Jellal, Mohamed

Abstract

This paper shows that social interactions can induce families of migrants to care about hierarchical social status because it serves as a signal device of non-observable income. Hence , a concern for social status induces theses families to engage in conspicuous consumption in order to signal their relative wealth. Consequently, the model shows a positive correlation between disposable income and consumption of the positional good . As a corollary, families who receive large remittances tendto invest more in the signaling game of wealth.

Suggested Citation

  • Jellal, Mohamed, 2014. "Diaspora transferts et signal de richesse [Diaspora remittances and signaling wealth game]," MPRA Paper 57356, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57356
    as

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    File URL: https://mpra.ub.uni-muenchen.de/57356/1/MPRA_paper_57356.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Diaspora; Remittances; Status Seeking; Conspicuous Consumption; Signaling game;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D1 - Microeconomics - - Household Behavior
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Z1 - Other Special Topics - - Cultural Economics

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