Arbeitspapier
Status preference, wealth, and dynamics in the open economy
The implications of status preference in a simple open economy model will be investigated in this paper. The open economy is modeled as a continuum of identical representative agents who have preferences over consumption and status. In the paper status is identified as relative wealth, which takes the form of relative holdings international financial assets. A symmetric macroeconomic equilibrium is derived in which status is the source of transitional dynamics for consumption and the current account balance. This result illustrates another way to generate transitional dynamics in the small open economy model, which, as is wellknown, does not have well-defined dynamics under perfect capital mobility. The role of status plays in influencing the open economy's adjustment to various macroeconomic shocks is also considered.
- Language
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Englisch
- Bibliographic citation
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Series: Reihe Ökonomie / Economics Series ; No. 99
- Classification
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Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Open Economy Macroeconomics
- Subject
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status-preference
open economy dynamics
Sozialer Status
Offene Volkswirtschaft
Theorie
- Event
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Geistige Schöpfung
- (who)
-
Fisher, Walter H.
- Event
-
Veröffentlichung
- (who)
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Institute for Advanced Studies (IHS)
- (where)
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Vienna
- (when)
-
2001
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fisher, Walter H.
- Institute for Advanced Studies (IHS)
Time of origin
- 2001
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