L'hypothèse d'utilité relative dans l'analyse économique:enjeux et conséquences

Thi Kim Cuong Pham ()

Revue d'économie politique, 2008, vol. 118, issue 4, 541-572

Abstract: Homo oeconomicus?s utility function assumes the absence of social interactions and the independence of individual preferences. This utility function, defined over absolute income, receives numerous studies based on experimental and survey data. In this paper, I begin by outlying some empirical results in favour of the relativity of utility. The relative utility hypothesis postulates that individual compares his income to a reference level so that his welfare partly depends on his relative position. The latter is viewed as individual?s social status. I also present the consequences of status-seeking on normative property of decentralized equilibrium, on corrected taxation and optimal redistributive taxation. The paper also emphasizes that status-seeking may be considered as an argument explaining economic growth and others related phenomena such as inequality, welfare dynamics, social stratification and taxation which leads to optimal economic growth.

Keywords: welfare; economic growth; public policy; social status; relative utility (search for similar items in EconPapers)
Date: 2008
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