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- W201601676 abstract "This paper explains the observed stagnation of ‘happiness’ measures through a growth model in which agents care about conspicuous consumption. ‘Normal goods’ confer direct utility, while ‘status goods’ confer utility only at the expense of others. Firms can improve the quality of both goods through R&D. The Nash equilibrium of the consumer game results in the share of expenditure on status goods increasing with the number of times the status good has been improved. As the economy grows, resources for innovation are transferred entirely to statusgood R&D. The resulting long-run rate of utility growth is negative. And I saw that all labour and all achievement spring from man’s envy of his neighbour. This too is meaningless, a chasing after the wind. 1 Ecclesiastes 4:4 It is easy to agree with Oswald (1997) and Ng (1997) that since most people cite happiness as their most important life-objective, then reported levels of happiness should also be an important measure of economic performance. Of" @default.
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- W201601676 title "STATUS E FFECTS A ND N EGATIVE U TILITY G ROWTH" @default.
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