Occupation-induced status, social norms, and economic growth
Nikolaos Kontogiannis (),
Anastasia Litina () and
Journal of Economic Behavior & Organization, 2019, vol. 163, issue C, 348-360
We analyse a monetary growth model where entrepreneurs borrow funds to invest in projects that produce capital goods. In addition to their varying pecuniary returns, different projects also vary with respect to the status they confer to the entrepreneurs who operate them. We show that (i) social status increases the growth rate, but this effect is mitigated by a social norm that inversely links overall levels of employment in the high-return project with the status conferred to it; (ii) the combined effect of social status and inflation is a source of transitional dynamics in an environment where such dynamics would not emerge if considerations of occupational prestige were absent; (iii) when the social norm affects social status, the economy's dynamics may be manifested in the form of endogenous volatility; (iv) the presence and characteristics of social status can generate a negative correlation between volatility and growth.
Keywords: Social status; Norms; Economic growth; Cycles (search for similar items in EconPapers)
JEL-codes: E32 O42 Z10 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:163:y:2019:i:c:p:348-360
Access Statistics for this article
Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.
More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().