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Social status pursuit, distribution of bequests and inequality

Carmen Camacho, Fatih Harmankaya and Çağrı Sağlam ()

Economic Modelling, 2020, vol. 86, issue C, 183-191

Abstract: The quest for social status modifies lifetime decisions and as a consequence, the trajectory of the overall economy. Focusing on the relative wealth dimension of social status, we build a two-period overlapping generations model with heterogeneous agents to investigate the effects of status quest on the evolution of bequest distribution and household inequality. We show that the bequest motive and the concern for social status not only increase the stationary level of capital but also enhance the household equality.

Keywords: Reference dependent utility; Bequests; Social status; Household inequality (search for similar items in EconPapers)
JEL-codes: D30 D90 E71 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Social status pursuit, distribution of bequests and inequality (2020)
Working Paper: Social status pursuit, distribution of bequests and inequality (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:86:y:2020:i:c:p:183-191

DOI: 10.1016/j.econmod.2019.06.010

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