Wealth inequality under “keeping up with the Joneses” preferences

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 145
Issue: C
Pages: 282-285

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:ecolet:v:145:y:2016:i:c:p:282-285
Journal Field
General
Author Count
1
Added to Database
2026-01-25