Heffetz, Ori - In: The Review of Economics and Statistics 93 (2011) 4, pp. 1101-1117
This paper shows that, consistent with a signaling-by-consuming model à la Veblen, income elasticities can be predicted from the visibility of consumer expenditures. We outline a stylized conspicuous consumption model where income elasticity is endogenously predicted to be higher if a good is...