Status consumption and intertemporal substitution — Anurag Srivastava (Economics PhD seminar)

Abstract:

The empirical measurements of status consumption have focused on visible consumption in developed markets. We use a framework of demand for quality under uncertainty and endowment effects to interpret status as a long-term goal of the consumer in an intertemporal substitution setting. The stochastic and non-stochastic models thus formulated may be more pertinent to the demand for status consumption in developing markets where urban developments are concentrated and wealth differences are higher.