Tournemaine, Frederic and Tsoukis, Christopher (2008): Gain versus pain from status and ambition: Effects on growth and inequality.
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To shed lights on growth, distribution and the relationships between the two, we develop a growth model with heterogeneous individuals who care about social status. Individuals' heterogeneity stems from two sources: their innate skills and their degree of ambition. While the willingness of individuals to accumulate wealth depends whether they experience gain or pain from loss of status, we show that ambition of individuals plays an important role regarding growth and distribution: ambition can inhibit or foster accumulation of wealth, then in turn growth. In such a context, we show that growth can be positively or negatively correlated with inequalities.
|Item Type:||MPRA Paper|
|Original Title:||Gain versus pain from status and ambition: Effects on growth and inequality|
|Keywords:||social aspirations, ambition, inequality, growth|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models|
|Depositing User:||Frederic Tournemaine|
|Date Deposited:||08. May 2008 19:23|
|Last Modified:||17. Feb 2013 02:59|
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