Beckmann, Klaus Bertram; Gattke, Susan - Fächergruppe Volkswirtschaftslehre, Helmut Schmidt … - 2008
We take issue with the argument expounded, among others, by Layard (2006, Economic Journal) that status-seeking preferences justify heavier taxation of income because this serves to internalise the negative externality that the pursuit of status imposes on others. In a model where status depends...