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Journal of Economic Behavior & Organization
Article
License: CC BY NC ND
Data sources: UnpayWall
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Journal of Economic Behavior & Organization
Article . 2015 . Peer-reviewed
License: Elsevier TDM
Data sources: Crossref
Journal of Economic Behavior & Organization
Article . 2015
License: unspecified
Data sources: WU Research
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Conspicuous consumption, conspicuous health, and optimal taxation

Authors: Mujcic, Redzo; Frijters, Paul;

Conspicuous consumption, conspicuous health, and optimal taxation

Abstract

We present a simple model of status-seeking over multiple socioeconomic domains by introducing the concept of conspicuous health as an argument in the utility function, in addition to the well-established conspicuous consumption term. We explore the implications of such a utility function for optimal non-linear taxation, where an increase in concerns for conspicuous health has an opposite effect on the marginal tax rate, compared to an increase in concerns for conspicuous consumption. Using life satisfaction panel data from Australia, along with an improved measure of exogenous reference groups (that accounts for the ‘time era’ of respondents), we find empirical evidence of a comparison health effect.

Countries
Australia, Austria
Keywords

Optimal taxation, Subjective well-being, 2002 Economics and Econometrics, Conspicuous health, 1407 Organizational Behavior and Human Resource Management, Simultaneous status races, Exogenous reference groups, HJ, Panel data

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
30
Top 10%
Top 10%
Top 10%
Green
hybrid