Growth, habit formation, and catching-up with the Joneses
نویسندگان
چکیده
منابع مشابه
A Note on Catching Up with the Joneses and Indeterminacy
This paper studies the possibility that a “catching-up-with-the-Joneses” effect can cause indeterminacy. In an otherwise standard growth model with an external past consumption habit, we analytically show that a catching-up-with-the-Joneses effect is a possible source of indeterminacy. In the quantitative investigation, we use a calibrated version of the model with a CES utility and find that i...
متن کاملKeeping up with the Joneses
In field-capital theory, people acquire economic, social and cultural capital which they deploy in social arenas known as "fields" to compete for positions of distinction and status. Competitive behaviour in these fields is of interest to marketers. Examining human behaviour through the lens of field and capital theory highlights the importance of the competition motive in explaining consumers'...
متن کاملTax Policy and Aggregate Demand Management Under Catching Up with the Joneses
This paper examines the role for tax policies in productivity-shock driven economies with catching-up-with-the-Joneses utility functions. The optimal tax policy is shown to affect the economy countercyclically via procyclical taxes, i.e., “cooling down” the economy with higher taxes when it is “overheating” in booms and “stimulating” the economy with lower taxes in recessions to keep consumptio...
متن کاملAppendix for "Habit Persistence and Keeping Up with the Joneses: Evidence from Micro Data"
The data set used in the analysis is a random sample of credit card accounts, active and not delinquent as of July 1999. Each account is followed for the period between the third quarter of 1999 and the third quarter of 2002. The unit of observation is the account in a given quarter. The card could be used by more than an individual and therefore I will refer to the decision maker behind it as ...
متن کاملKeeping , not catching , up with the Joneses : An international asset pricing model ∗
We derive an international asset pricing model that assumes investors have preferences of the type “keeping up with the Joneses.” In an international setting investors compare their current wealth with that of their peers who live in the same country. Investors value domestic assets because they are more highly correlated with the domestic benchmark. In equilibrium, this gives rise to a multifa...
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ژورنال
عنوان ژورنال: European Economic Review
سال: 2005
ISSN: 0014-2921
DOI: 10.1016/j.euroecorev.2004.03.005