In the present paper I introduce “keeping up with the Joneses preferences” in an otherwise standard heterogeneous agent economy. The model simulations show that this kind of preferences can generate a substantial increase in wealth inequality compared to an equal model with standard expected utility.

Wealth inequality under “keeping up with the joneses” preferences

CAMPANALE, Claudio Giovanni
2016-01-01

Abstract

In the present paper I introduce “keeping up with the Joneses preferences” in an otherwise standard heterogeneous agent economy. The model simulations show that this kind of preferences can generate a substantial increase in wealth inequality compared to an equal model with standard expected utility.
2016
145
282
285
http://www.sciencedirect.com/science/article/pii/S0165176516302397
‘‘Keeping up with the Joneses”; Consumption cascades; Heterogeneous agents; Wealth inequality
Campanale, Claudio
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2318/1636540
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