The paper develops a signalling theory of conspicuous consumption where the drive toward spending on an otherwise unuseful good comes from the desire to enter clubs and benefit from the provision of club good financed by members of a club and from a social status effect. Individual incomes are...

The aim of this paper is to analyze the influence of social mobility on inequality dynamics and economic growth. We develop a framework in which agents accumulate human capital benefiting from two types of externalities: a social one and a local one. We first characterize the equilibrium...