Relative deprivation, wealth inequality and economic growth

Baochun Peng

Research output: Journal article publicationJournal articleAcademic researchpeer-review

4 Citations (Scopus)

Abstract

This paper presents an endogenous growth model where utility depends on relative deprivation as well as consumption. It is shown that a negative relationship exists between wealth inequality and equilibrium growth rate. In addition, if the concern for relative deprivation is strong enough, instantaneous utility decreases while aggregate income increases.
Original languageEnglish
Pages (from-to)223-229
Number of pages7
JournalJournal of Economics/ Zeitschrift fur Nationalokonomie
Volume94
Issue number3
DOIs
Publication statusPublished - 1 Sep 2008
Externally publishedYes

Keywords

  • Endogenous growth
  • Inequality
  • Relative deprivation

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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