Growth, Stagnation and Status Preference

32 Pages Posted: 19 Jun 2008

See all articles by Yoshiyasu Ono

Yoshiyasu Ono

Osaka University - Institute of Social and Economic Research (ISER)

Multiple version iconThere are 2 versions of this paper

Date Written: June 2008

Abstract

We consider three objects of people's status preference, consumption, physical capital holding and money holding, and show that an economy grows or stagnates depending on which object people most seriously take as status. If the main object of status preference is consumption, a steady state with full employment is reached. If it is physical capital (viz. a producible asset), permanent growth with full employment occurs. However, if it is money (viz. an unproducible asset), stagnation with persistent unemployment arises.

Keywords: Status Preference, Persistent Unemployment, Long-Run Growth

JEL Classification: E12, E24, O41

Suggested Citation

Ono, Yoshiyasu, Growth, Stagnation and Status Preference (June 2008). ISER Discussion Paper No. 715. Available at SSRN: https://ssrn.com/abstract=1147915 or http://dx.doi.org/10.2139/ssrn.1147915

Yoshiyasu Ono (Contact Author)

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki, Osaka 567-0047
Japan

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