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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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    Citations

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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. Marjit Sugata & Oladi Reza & Roychowdhury Punarjit, 2020. "Income Distribution and Trade Pattern," Review of Economics, De Gruyter, vol. 71(1), pages 1-14, April.
    3. Sugata Marjit & Sattwik Santra & Koushik Kumar Hati, 2018. "Status Seeking Behavior of the Poor: A Study on India," CESifo Working Paper Series 7213, CESifo.
    4. Sugata Marjit & Krishnendu Ghosh Dastidar & Abhilasha Pandey, 2023. "A Theory of Indifference Based on Status-Seeking Behaviour," CESifo Working Paper Series 10409, CESifo.
    5. Sugata Marjit & Punarjit Roychowdhury, 2015. "Inequality and Trade: A Behavioral-Economics Perspective," Discussion Papers 2015-08, University of Nottingham, GEP.
    6. Hamid Beladi & Sugata Marjit & Reza Oladi & Lei Yang, 2021. "Malnutrition in the shadow of economic growth," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 500-514, February.
    7. Jayanta Kumar Dwibedi & Sugata Marjit, 2017. "Relative Affluence and Child Labor—Explaining a Paradox," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1178-1190, November.

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    More about this item

    Keywords

    Status; Consumption pattern; Inequality; Poverty;
    All these keywords.

    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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