The Detrimental Effects of Luxury Goods Consumption on Socially Excluded Groups

11 Pages Posted: 25 Oct 2018

See all articles by Kenneth S. Chan

Kenneth S. Chan

McMaster University - Department of Economics; City University of Hong Kong (CityUHK) - Department of Economics & Finance

Bharat Hazari

City University of Hong Kong (CityUHK)

Vijay Mohan

RMIT University

Date Written: November 2018

Abstract

This paper examines the impact of luxury goods consumption by the wealthy on the welfare of socially excluded groups. We find that a deterioration in the luxury goods terms‐of‐trade or an increase in the capital used to produce nonluxury traded goods have the consequence of increasing the welfare of the wealthier sections of society at the expense of the socially excluded groups.

Suggested Citation

Chan, Kenneth S. and Hazari, Bharat and Mohan, Vijay, The Detrimental Effects of Luxury Goods Consumption on Socially Excluded Groups (November 2018). Review of Development Economics, Vol. 22, Issue 4, pp. e228-e238, 2018, Available at SSRN: https://ssrn.com/abstract=3272434 or http://dx.doi.org/10.1111/rode.12524

Kenneth S. Chan (Contact Author)

McMaster University - Department of Economics ( email )

Hamilton, Ontario L8S 4M4
Canada
(905)521-8232 (Fax)

City University of Hong Kong (CityUHK) - Department of Economics & Finance ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Bharat Hazari

City University of Hong Kong (CityUHK) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Vijay Mohan

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

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