The quest for status and R&D-based growth

Prettner, Klaus; Hof, Franz X.

The quest for status and R&D-based growth

dc.contributor.author	Prettner, Klaus	de
dc.contributor.author	Hof, Franz X.	de
dc.date.accessioned	2024-04-08T08:53:21Z
dc.date.available	2024-04-08T08:53:21Z
dc.date.created	2016-09-15
dc.date.issued	2016
dc.description.abstract	We analyze the impact of status preferences on technological progress and long-run economic growth within an R&D-based framework. For this purpose, we extend the standard relative wealth approach by allowing the various assets held by households to differ with respect to their status relevance. Relative wealth preferences imply that the effective rate of return on saving in the form of a particular asset is the sum of its market rate of return and its status-related extra return. We show that the status relevance of shares issued by entrants to finance the purchase of new technologies is of crucial importance for long-run growth: First, an increase in the intensity of the quest for status raises the steady-state economic growth rate only if the status-related extra return of these shares is strictly positive. Second, for any given degree of status consciousness, the long-run economic growth rate depends positively on the relative status relevance of shares issued by entrants. Third, while the decentralized long-run economic growth rate is less than its socially optimal counterpart in the standard model, wealth externalities reduce this distortion.	en
dc.identifier.swb	477092144
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/6071
dc.identifier.urn	urn:nbn:de:bsz:100-opus-12706
dc.language.iso	eng
dc.relation.ispartofseries	Hohenheim discussion papers in business, economics and social sciences; 2016,12
dc.rights.license	publ-mit-pod	en
dc.rights.license	publ-mit-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_mit_pod.php
dc.subject	Status concerns	en
dc.subject	Relative wealth	en
dc.subject	Technological progress	en
dc.subject	Long-run economic growth	en
dc.subject	Social optimality	en
dc.subject.ddc	330
dc.subject.gnd	Wirtschaftswachstum	de
dc.subject.gnd	Technischer Fortschritt	de
dc.title	The quest for status and R&D-based growth	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	3	de
local.institute.number	520	de
local.opus.number	1270
local.series.issueNumber	2016,12
local.series.title	Hohenheim discussion papers in business, economics and social sciences
local.university	Universität Hohenheim	de
local.university.faculty	Faculty of Business, Economics and Social Sciences	en
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institute for Economics	en
local.university.institute	Institut für Volkswirtschaftslehre	de

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