Conspicuous Consumption, Economic Growth, and Taxation: A Generalization

Fisher, Walter H. and Hof, Franz X. (March 2000) Conspicuous Consumption, Economic Growth, and Taxation: A Generalization. IHS Economics Series 77

[img]
Preview
Text
es-77.pdf

Download (398kB) | Preview

Abstract or Table of Contents

Abstract: This paper studies the infuence of consumption externalities in the Ramsey model. In contrast to the recent literature, a quite general specification of preferences is used and the concept of the effective intertemporal elasticity of substitution is introduced. We give conditions for the observational equivalence between economies with consumption externalities and externality-free economies. An additional key result is that there exist several types of instantaneous utility functionsin which the decentralized solution coincides with the socially planned one in spite of the presence of consumption externalities. The conditions for optimal taxation are also derived.;

Item Type: IHS Series
Keywords: 'Social status' 'Conspicuous consumption' 'Economic growth'
Classification Codes (e.g. JEL): D62, D91, E21, E62
Status: Published
Date Deposited: 26 Sep 2014 10:37
Last Modified: 22 Jul 2017 18:23
URI: http://irihs.ihs.ac.at/id/eprint/1248

Actions (login required)

View Item View Item