Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26406
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dc.contributor.authorAlvarez-Cuadrado, Franciscoen_US
dc.contributor.authorvan Long, Ngoen_US
dc.date.accessioned2008-09-08en_US
dc.date.accessioned2009-07-28T08:31:29Z-
dc.date.available2009-07-28T08:31:29Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/26406-
dc.description.abstractWe propose an overlapping generations economy where households care about relative consumption, the difference between their consumption and the consumption of their reference group. An individual's consumption is driven by the comparison of his lifetime income and the lifetime income of his reference group; hence the paper offers a permanent income version of the Duesenberry's relative income hypothesis. Across households the saving ratio increases with income while aggregate saving is independent of the income distribution. Positional concerns lead agents to over-consume, over-work and under-save. We propose a simple tax schedule that induces the competitive economy to achieve the efficient allocation.en_US
dc.language.isoengen_US
dc.publisher|aCenter for Economic Studies and Ifo Institute (CESifo) |cMunichen_US
dc.relation.ispartofseries|aCESifo working paper|x2361en_US
dc.subject.jelH21en_US
dc.subject.ddc330en_US
dc.subject.keywordRelative consumptionen_US
dc.subject.keywordrelative income hypothesisen_US
dc.subject.keywordpermanent incomeen_US
dc.subject.stwEinkommenshypotheseen_US
dc.subject.stwKonsuminterdependenzen_US
dc.subject.stwLebenszyklusen_US
dc.subject.stwOptimale Besteuerungen_US
dc.subject.stwTheorieen_US
dc.titleA permanent income version of the relative income hypothesisen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn577109952en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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