| Alexis Direr, University of Paris 1 |
| Relative Consumption and Saving |
| Session: C-12-4 Wednesday 16 August 2000 by Direr, Alexis |
| We analyze in a two-period model the effect of relative consumption on saving by assuming that people care about their ordinal rank in the consumption distribution at each date. We outline some general properties of the model and then completely solve a simple version. We show that a rise in consumption inequalities implies a negative impact on saving. |
| Submitted paper full-text in .pdf |