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We study a series of sustained growth models in which households' preferences are affected by the consumption of other households as summarized by average consumption. In endogenous growth models, the equilibrium paths involve lower savings and lower growth than the corresponding efficient...
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Lower-income consumers who seek to increase their perceived social status or to emulate their wealthier peers may be … more expensive vehicles than they otherwise would. The preferences for prestige are driven both by status signaling and …
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