Relative Consumption and Saving

Alexis Direr

No 1056, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: We analyze in a two-period model the effect of relative consumption on saving by assuming that people care about their ordinal rank in the consumption distribution at each date. We outline some general properties of the model and then completely solve a simple version. We show that a rise in consumption inequalities implies a negative impact on saving.

Date: 2000-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://fmwww.bc.edu/RePEc/es2000/1056.pdf main text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:wc2000:1056

Access Statistics for this paper

More papers in Econometric Society World Congress 2000 Contributed Papers from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum (baum@bc.edu).