Malnutrition in the shadow of economic growth

Hamid Beladi, Sugata Marjit, Reza Oladi and Lei Yang

Review of Development Economics, 2021, vol. 25, issue 1, 500-514

Abstract: We formulate the consumption and wealth accumulation behavior for low‐income agents who are concerned with their relative income with respect to a reference group. Using a dynamic consumption and saving model, we show the conditions under which low‐income and status‐seeking individuals accumulate more wealth and consume less of a nutritious good than the levels in the absence of status‐seeking behavior. Our results suggest that malnutrition and economic growth may go hand in hand in developing economies.

Date: 2021
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