Growth, Stagnation and Status Preference

28 Pages Posted: 12 Jan 2011

See all articles by Ryu-ichiro Murota

Ryu-ichiro Murota

affiliation not provided to SSRN

Yoshiyasu Ono

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

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Date Written: January 10, 2011

Abstract

We show that an economy grows or stagnates depending on which of three objects people most esteem as tokens of status. If the main object of status preference is consumption, then a steady state with full employment is reached. If it is physical capital (which is a producible asset), then permanent growth with full employment occurs. However, if it is money (which is not a producible asset), stagnation with persistent unemployment arises.

Suggested Citation

Murota, Ryu-ichiro and Ono, Yoshiyasu, Growth, Stagnation and Status Preference (January 10, 2011). Metroeconomica, Vol. 62, Issue 1, pp. 122-149, 2011. Available at SSRN: https://ssrn.com/abstract=1738145 or http://dx.doi.org/10.1111/j.1467-999X.2010.04096.x

Ryu-ichiro Murota (Contact Author)

affiliation not provided to SSRN

No Address Available

Yoshiyasu Ono

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

6-1 Mihogaoka
Ibaraki, Osaka 567-0047
Japan

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