The impact of a reference point determined by social comparison on wealth growth and inequality

doi:10.1016/j.jedc.2021.104120

	The impact of a reference point determined by social comparison on wealth growth and inequality
	Lou, Youcheng 2; Strub, Moris S.5; Li, Duan 1; Wang, Shouyang 2,3,4
刊名	JOURNAL OF ECONOMIC DYNAMICS & CONTROL
	2021-06-01
卷号	127 页码:26
关键词	Behavioral finance Reference point Social interactions Wealth growth Inequality
ISSN号	0165-1889
DOI	10.1016/j.jedc.2021.104120
英文摘要	We study the impact of a reference point determined by social comparison on wealth growth and inequality. The reference point of each individual investor contains both personal and social components. Whereas the personal component depends on the investor's own history of wealth, the social component is determined by the wealth level of other investors in her network. In the benchmark case without social interactions and under the assumption of homogeneous preferences, each investor's expected wealth grows at a common rate, the wealth gaps widens and the Gini coefficient remains constant. On the other hand, if the reference point is determined solely by social interactions, then it is possible that the network simultaneously experiences high wealth growth and a reduction in inequality. Finally, for the general case where the reference point incorporates both personal and social components and some extensions of the model, we numerically show that increasing the degree of social interactions is beneficial for both increasing wealth growth and reducing inequality. (C) 2021 Elsevier B.V. All rights reserved.
资助项目	National Natural Science Foundation of China[71971208] ; National Natural Science Foundation of China[72050410356] ; National Natural Science Foundation of China[71988101] ; Hong Kong Research Grants Council[14204514] ; Hong Kong Research Grants Council[11200219] ; Hong Kong Scholars Program[XJ2015049] ; SUSTech ; Shenzhen Humanities & Social Sciences Key Research Bases
WOS研究方向	Business & Economics
语种	英语
出版者	ELSEVIER
WOS记录号	WOS:000702449800013
内容类型	期刊论文
源URL	[http://ir.amss.ac.cn/handle/2S8OKBNM/59344]
专题	中国科学院数学与系统科学研究院
通讯作者	Strub, Moris S.
作者单位	1.City Univ Hong Kong, Sch Data Sci, Hong Kong, Peoples R China 2.Chinese Acad Sci, Acad Math & Syst Sci, MDIS, Beijing 100190, Peoples R China 3.Univ Chinese Acad Sci, Sch Econ & Management, Beijing 100190, Peoples R China 4.Chinese Acad Sci, Ctr Forecasting Sci, Beijing 100190, Peoples R China 5.Southern Univ Sci & Technol, Dept Informat Syst & Management Engn, Shenzhen 518055, Peoples R China
推荐引用方式 GB/T 7714	Lou, Youcheng,Strub, Moris S.,Li, Duan,et al. The impact of a reference point determined by social comparison on wealth growth and inequality[J]. JOURNAL OF ECONOMIC DYNAMICS & CONTROL,2021,127:26.
APA	Lou, Youcheng,Strub, Moris S.,Li, Duan,&Wang, Shouyang.(2021).The impact of a reference point determined by social comparison on wealth growth and inequality.JOURNAL OF ECONOMIC DYNAMICS & CONTROL,127,26.
MLA	Lou, Youcheng,et al."The impact of a reference point determined by social comparison on wealth growth and inequality".JOURNAL OF ECONOMIC DYNAMICS & CONTROL 127(2021):26.