Marjit, Sugata and Roychowdhury, Punarjit (2011): Status, Poverty and Trade.
Download (446kB) | Preview
The conflict between the income based and nutrition based estimates of poverty is a widely debated issue in economic literature. This paper, using a two commodity framework, attempts to show that in presence of inequality, a status driven utility function can reconcile the conflict between the two measures of poverty. In addition, a simple general equilibrium model using such a utility function is constructed to analyse the implications of social inequality on relative prices and the emerging pattern of trade.
|Item Type:||MPRA Paper|
|Original Title:||Status, Poverty and Trade|
|English Title:||Status, Poverty and Trade|
|Keywords:||Inequality, Nutrition good, Poverty, Status good, Trade, Utility|
|Subjects:||D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General
D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory
D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development
|Depositing User:||sugata marjit|
|Date Deposited:||27 Sep 2011 13:06|
|Last Modified:||23 Jan 2016 20:20|
Banerjee, A. and Duflo, E. (2007), “The Economic Lives of the Poor”, Journal of Economic Perspectives, 21(1), pp. 141-168.
Beath, J. A. and Fitzroy, F. R. (2007), “Status, Happiness and Relative Income”, IZA Discussion Paper No. 2658.
Clark, A. E., Frijters, P. and Shields, M. A. (2008), “Relative Income, Happiness and Utility: An Explanation for the Easterlin Paradox and Other Puzzles”, Journal of Economic Literature, 46(1), pp. 95-144.
Deaton, A. and Drèze, J. (2009), “Food and Nutrition in India: Facts and Interpretations,” Economic and Political Weekly, 44(7), pp. 42-65.
Fafchamps, M. and Shilpi, F. (2008), “Subjective welfare, isolation, and relative consumption,” Journal of Development Economics, 86(1), pp. 43-60.
Ghiglino, C and Goyal, S. (2010), “Keeping up with the Neighbors: Social Interaction in a Market Economy”, Journal of the European Economic Association, 8(1), pp. 90-119.
Moav, O. and Neeman, Z. (2010), “Status and Poverty”, Journal of the European Economic Association, 8(2-3), pp. 413-420.
Mujcic, R. and Frijters, P. (2010), “Economic Choices and Status: Measuring Preferences for Income Rank”, IZA Discussion Paper No. 5157.
Patnaik, U. (2007), “Neoliberalism and Rural Poverty in India”, Economic and Political Weekly, 42 (30), pp. 3132-3150.
Sivanathan, N. and Pettit, N. C. (2010), “Protecting the self through consumption: Status goods as affirmational commodities”, Journal of Experimental Social Psychology, 46(3), pp. 564-570.
Veblen, T. (1899), The Theory of Leisure Class, NY: Macmillan