Munich Personal RePEc Archive

Conflicting Measures of Poverty and Inadequate Saving by the Poor – The Role of Status Driven Utility Function

Marjit, Sugata and Roy, Ranjan (2010): Conflicting Measures of Poverty and Inadequate Saving by the Poor – The Role of Status Driven Utility Function.

[img]
Preview
PDF
MPRA_paper_27472.pdf

Download (159Kb) | Preview

Abstract

In presence of inequality a status driven utility function reconciles the conflict between income based and nutrition based measures of poverty. Moreover, it can explain why the poor tend to save less, an established empirical fact in the developing countries. The result is independent of the assumption of imperfect capital market. The paper attempts to integrate various strands of literature on status effects.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.