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dc.contributor.authorChai, Andreas
dc.contributor.authorKaus, Wolfhard
dc.contributor.authorKiedaisch, Christian
dc.date.accessioned2020-08-07T05:27:01Z
dc.date.available2020-08-07T05:27:01Z
dc.date.issued2019
dc.identifier.issn0095-2583
dc.identifier.doi10.1111/ecin.12756
dc.identifier.urihttp://hdl.handle.net/10072/384300
dc.description.abstractUsing South African household expenditure data, we analyze how the spending of a household on visible goods, such as jewelry and clothes, depends on the distribution of income within its social group. We find that this spending is positively correlated with the share of peers who possess a similar income level to the household, what we dub the “local income share.” Moreover, we find that the spending of a household on visible goods is positively correlated with the average income of peers that are poorer than this household. We interpret this as evidence for cascade effects through which income changes among the poorest in the social group can trigger adjustments in the visible spending patterns of the wealthy. In line with previous research (Charles et al. 2009), we also find that visible spending of a household is negatively correlated with the average income of its social group. We present a simple model of status competition based on Hopkins and Kornienko (2004) that synthesizes these effects and can account for our results. (JEL D12, D31, O12).
dc.description.peerreviewedYes
dc.languageEnglish
dc.language.isoeng
dc.publisherWiley
dc.relation.ispartofpagefrom1324
dc.relation.ispartofpageto1341
dc.relation.ispartofissue3
dc.relation.ispartofjournalEconomic Inquiry
dc.relation.ispartofvolume57
dc.subject.fieldofresearchApplied Economics
dc.subject.fieldofresearchEconomics
dc.subject.fieldofresearchcode1402
dc.subject.fieldofresearchcode14
dc.titleConspicuous Spending and the Income Distribution of Social Groups
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
dc.description.versionAccepted Manuscript (AM)
gro.rights.copyright© 2019 Western Economic Association International. This is the peer reviewed version of the following article: Conspicuous Spending and the Income Distribution of Social Groups, Economic Inquiry, Vol. 57, No. 3, 2019, 1324–1341, which has been published in final form at https://doi.org/10.1111/ecin.12756. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving (http://olabout.wiley.com/WileyCDA/Section/id-828039.html)
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gro.griffith.authorChai, Andreas


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