Relative consumption, relative wealth, and long-run growth : when and why is the standard analysis prone to erroneous conclusions?

Prettner, Klaus; Hof, Franz X.

Relative consumption, relative wealth, and long-run growth : when and why is the standard analysis prone to erroneous conclusions?

dc.contributor.author	Prettner, Klaus	de
dc.contributor.author	Hof, Franz X.	de
dc.date.accessioned	2024-04-08T08:58:20Z
dc.date.available	2024-04-08T08:58:20Z
dc.date.created	2020-01-14
dc.date.issued	2019
dc.description.abstract	We employ a novel approach for analyzing the effects of relative consumption and relative wealth preferences on both the decentralized and the socially optimal economic growth rates. In the pertinent literature these effects are usually assessed by examining the dependence of the growth rates on the two parameters of the instantaneous utility function that seem to measure the strength of the relative consumption and the relative wealth motive. We go beyond the sole consideration of parameters by revealing the fundamental factors that ultimately determine long-run growth. In doing so we identify widely used types of status preferences in which the traditional approach is prone to erroneous conclusions. For example, in one of these specifications the parameter that seems to determine the strength of the relative consumption motive actually also affects the strength of the relative wealth motive and the elasticity of intertemporal substitution.	en
dc.identifier.swb	1687246262
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/6456
dc.identifier.urn	urn:nbn:de:bsz:100-opus-16957
dc.language.iso	eng
dc.relation.ispartofseries	Hohenheim discussion papers in business, economics and social sciences; 2019,12
dc.rights.license	publ-mit-pod	en
dc.rights.license	publ-mit-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_mit_pod.php
dc.subject	Relative consumption	en
dc.subject	Relative wealth	en
dc.subject	Quest for status	en
dc.subject	Long-run economic growth	en
dc.subject	Social optimality	en
dc.subject	Deep factors	en
dc.subject.ddc	330
dc.subject.gnd	Wirtschaftswachstum	de
dc.subject.gnd	Verbrauch	de
dc.subject.gnd	Wohlstand	de
dc.title	Relative consumption, relative wealth, and long-run growth : when and why is the standard analysis prone to erroneous conclusions?	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.export.bibtex	@techreport{Prettner2019, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6456}, author = {Prettner, Klaus and Hof, Franz X.}, title = {Relative consumption, relative wealth, and long-run growth : when and why is the standard analysis prone to erroneous conclusions?}, year = {2019}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }
local.export.bibtexAuthor	Prettner, Klaus and Hof, Franz X.
local.export.bibtexKey	Prettner2019
local.export.bibtexType	@techreport
local.faculty.number	3	de
local.institute.number	520	de
local.opus.number	1695
local.series.issueNumber	2019,12
local.series.title	Hohenheim discussion papers in business, economics and social sciences
local.university	Universität Hohenheim	de
local.university.faculty	Faculty of Business, Economics and Social Sciences	en
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institute for Economics	en
local.university.institute	Institut für Volkswirtschaftslehre	de

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