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Relative Social Status and Conflicting Measures of Poverty - A Behavioral Analytical Model

Author

Listed:
  • Sugata Marjit

    (Centre for Studies in Social Sciences, Calcutta)

  • Sattwik Santra

    (Centre for Studies in Social Sciences, Calcutta)

  • Koushik Kumar Hati

    (Centre for Studies in Social Sciences, Calcutta)

Abstract

We consider a situation where the relatively ‘poor’ are concerned about their relative income status with respect to a relevant reference group. Such a concern is explicitly introduced in a utility function to study the consumption behavior of the poor. We point towards a possible conflict between income based and nutrition- based measure of poverty. Changes in income distribution generate non-homothetic outcome for an “otherwise homothetic†preference structure and may convert an “otherwise normal†good into an inferior good.

Suggested Citation

  • Sugata Marjit & Sattwik Santra & Koushik Kumar Hati, 2015. "Relative Social Status and Conflicting Measures of Poverty - A Behavioral Analytical Model," Discussion Papers Series 543, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uq2004:543
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    References listed on IDEAS

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    1. Kerwin Kofi Charles & Erik Hurst & Nikolai Roussanov, 2009. "Conspicuous Consumption and Race," The Quarterly Journal of Economics, Oxford University Press, vol. 124(2), pages 425-467.
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    13. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
    14. Marjit, Sugata & Santra, Sattwik & Hati, Koushik Kumar, 2014. "Does inequality affect the consumption patterns of the poor? – The role of “status seeking” behaviour," MPRA Paper 54118, University Library of Munich, Germany.
    15. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
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    Cited by:

    1. Sugata Marjit & Lei Yang, 2015. "Accumulation with Malnutrition - The Role of Status Seeking Behavior," Discussion Papers Series 544, School of Economics, University of Queensland, Australia.
    2. Sugata Marjit & Punarjit Roychowdhury, 2015. "Inequality and Trade: A Behavioral-Economics Perspective," Discussion Papers 2015-08, University of Nottingham, GEP.
    3. Dwibedi, Jayanta Kumar & Marjit, Sugata, 2015. "Relative Affluence and Child Labor - Explaining a Paradox," MPRA Paper 66379, University Library of Munich, Germany, revised 31 Aug 2015.
    4. repec:bla:rdevec:v:21:y:2017:i:4:p:1178-1190 is not listed on IDEAS

    More about this item

    Keywords

    Status; Consumption pattern; Inequality; Poverty;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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