Marjit, Sugata and Roychowdhury, Punarjit (2012): Inequality, status effects and trade.
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In this paper we attempt to examine the role of social inequality and status effects in driving trade between two countries which differ systematically only in terms of income-distribution using a status-driven model of consumption involving a status and a non-status good. Our model illustrates that when trade opens up, the country characterized by a higher level of inequality is likely to export the non-status good to the country characterized by a lower level of inequality, thus, establishing the extent of inequality as a determining factor behind comparative advantage.
|Item Type:||MPRA Paper|
|Original Title:||Inequality, status effects and trade|
|Keywords:||Inequality; Status effects; Trade|
|Subjects:||D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
D - Microeconomics > D0 - General > D01 - Microeconomic Behavior: Underlying Principles
|Depositing User:||Punarjit Roychowdhury|
|Date Deposited:||23. Jul 2012 14:52|
|Last Modified:||11. Feb 2013 21:49|
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