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Social Organization in an Endogenous Growth Model
Author(s) -
Corneo Giacomo,
Jeanne Olivier
Publication year - 1999
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/1468-2354.00036
Subject(s) - endogenous growth theory , homogeneity (statistics) , economics , homogeneous , endogeny , matching (statistics) , microeconomics , growth model , social capital , competition (biology) , segmentation , capital accumulation , human capital , market economy , biology , ecology , computer science , mathematics , profit (economics) , social science , statistics , combinatorics , machine learning , artificial intelligence , sociology , endocrinology
We develop an endogenous growth model in which individuals form matches in order to consume goods that are not explicitly traded. The matching process endogenously generates a concern for relative wealth and is thereby beneficial for capital accumulation and economic growth. We then study how social segmentation in the matching process affects economic growth. Under strong segmentation, social competition over mates occurs inside homogeneous groups. This homogeneity increases the severity of the “rat race” of wealth accumulation and fosters economic growth.