Article ID Journal Published Year Pages File Type
971261 The Journal of Socio-Economics 2012 6 Pages PDF
Abstract

Based on sociologists’ findings, it is more likely that middle-status people are “keeping up with the Joneses” while both the highest-status and lowest-status people are “running away from the Joneses”. Existing economic models fail to reproduce this inverted-U shaped (IUS) curve. In my model, response to the Joneses is endogenized and is related to one's status position. Under some reasonable assumptions, an IUS pattern will appear. A comparison with a sociological explanation of the same phenomenon and further implications will also be discussed.

► Middle-status people are “keeping up with the Joneses”. ► Highest-status and lowest-status people are “running away from the Joneses”. ► An economic model of this inverted-U shaped (IUS) curve is proposed. ► A comparison with a sociological explanation will be provided.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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