Status Consumption and Poverty in Developing Countries: Evidence and Welfare Effects

This book investigates the scope, nature, and welfare effects of status consumption by the poor in developing countries, a phenomenon that is virtually unexplored in the development economics literature. It addresses questions such as: why do the poor buy status-intensive goods, while they suffer from inadequate levels of basic needs satisfaction? Is it because they are willing to pay extra for a good if it displays a well-known logo of a Western brand? What role do counterfeit goods play in status consumption by the poor? And do Western brand-name goods consumed by others provoke envy in poor observers? Answers to these questions are sought by the collection of primary data in Bolivia. An innovative feature of the book is the design of economic experiments to tackle issues related to status consumption in developing countries. While written primarily for (development) economists, the book should provide useful insights to development scholars in general and is accessible to interested practitioners in the field of development as well.