Comparing consumption: a curse or a blessing?

Arbeitspapier

Does it make us unhappier when we compare our current consumption with that of the Joneses or our own past achievements? This paper tries an answer without recurring on interpersonal utility comparisons. It calibrates an economy under three different assumptions, non-comparing utility, and inward-looking and outward-looking habit formation. Using consumption equivalents it then calculates how much individual welfare is affected in each economy by unexpected losses and gains of wealth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeitrag ; No. 382

Classification and Topics

• Classification: Wirtschaft ; Welfare Economics: General ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Macroeconomics: Consumption; Saving; Wealth ; Economic Growth and Aggregate Productivity: General
• Subject: habit formation ; happiness ; welfare ; economic growth ; Konsumtheorie ; Konsuminterdependenz ; Vermögen ; Lebenszufriedenheit ; Wohlfahrtseffekt ; Steady-State-Wachstum ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Strulik, Holger
• Event: Veröffentlichung
• (who): Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
• (where): Hannover
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/27192
• Last update: 10.03.2025, 11:42 AM CET