Re: Absolute vs. relative income level

2003-07-23 Thread Fred Foldvary
i think there is a at least partial contradiction between the hypothesis of diminishing marginal return of income and the hypothesis that people care about consuming more than their neighbors or about earning more than their neighbors (Frank: Luxury Fever). If the latter is true than the

Re: Absolute vs. relative income level

2003-07-23 Thread alypius skinner
Dear armchairs, i think there is a at least partial contradiction between the hypothesis of diminishing marginal return of income and the hypothesis that people care about consuming more than their neighbors or about earning more than their neighbors (Frank: Luxury Fever). If the latter is

Re: Absolute vs. relative income level

2003-07-23 Thread Tigger
i think there is a at least partial contradiction between the hypothesis of diminishing marginal return of income and the hypothesis that people care about consuming more than their neighbors or about earning more than their neighbors (Frank: Luxury Fever). If the latter is true than the

Re: Absolute vs. relative income level

2003-07-23 Thread Fred Foldvary
--- Tigger [EMAIL PROTECTED] wrote: Fred ( Alpius) are acting dense. Density is efficient. With greater density, we get more mass per volume, thus a more efficient use of space. A desire to earn more than the neighbors seems to say that at a level equal to the neighbor, the next dollar has