Status seeking in the small open economy

Arbeitspapier

In our modified version of the small open economy Ramsey model, we assume that agents have preferences over consumption and status which, in turn, is determined by relative wealth. This extension potentially eliminates the standard model's counterfactual result that an impatient country over time mortgages all of its capital and labor income. We show that the steady-state values of net assets and consumption, the speed of convergence and, in particular, the direction of adjustment during the transition depend crucially upon the degree of status consciousness. The latter also influences the economy's response to macroeconomic shocks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Reihe Ökonomie / Economics Series ; No. 106

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth ; Open Economy Macroeconomics
• Thema: status seeking ; relative wealth ; open economy dynamics ; Offene Volkswirtschaft ; Sozialer Status ; Konsumtheorie ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fisher, Walter H. ; Hof, Franz X.
• Ereignis: Veröffentlichung
• (wer): Institute for Advanced Studies (IHS)
• (wo): Vienna
• (wann): 2001

Weitere Informationen

• Handle: http://hdl.handle.net/10419/71232
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ