Bilancini, Ennio; Boncinelli, Leonardo - 2018
consumption generated by people's status-seeking behavior. They consider the joint role of pre-tax wage inequality and of social … norms determining how social status is assigned. They find that if social status is ordinal (i.e., only one's rank in the …-tax wages (or earning potentials) is low enough - i.e., inequality and taxation are substitutes. Instead, if status is cardinal …