We develop a model that predicts changes in household consumption following a mean preserving increase in consumption inequality. The model allows for multiple peer-groups (a high-consumption (HC) group and a low-consumption (LC) group) as well different degrees of conspicuousness between the goods. We find that following a mean preserving increase in consumption inequality, a household with a constant level of income will increase its consumption of the more conspicuous good when it has preferences consistent with (i) ‘keeping up with the Joneses’ and a relatively stronger HC effect or (ii) ‘running away from the Joneses’ and a relatively stronger LC effect. Using U.S. consumer expenditure data from 1986 to 2002, we find tremendous heterogeneity in household preferences. While U.S. households consistently demonstrate ‘keeping up with the Joneses’, the relative strengths of HC and LC effects vary across racial sub-groups as well as across goods. Likewise, while expenditure on clothing, jewelry, personal care, etc., is generally more conspicuous than expenditure on healthcare, home furnishings, vehicle maintenance, etc., among the LC group, it is less conspicuous among the HC group with some heterogeneity by race. We conclude that heterogeneity in preferences is a likely explanation for the differences in the observed relationship between conspicuous spending and peer group inequality.

中文翻译：

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炫耀性消费和同辈群体不平等：偏好的作用

我们建立了一个模型，该模型可预测保持平均消费不平等增加后的家庭消费变化。该模型允许多个对等组（高消费（HC）组和低消费（LC）组）以及商品之间的不同显眼程度。我们发现，在保持消费不平等的平均趋势之后，收入水平恒定的家庭如果其偏好与（i）“跟上琼斯”并保持相对较高的HC，则其对显眼商品的消费就会增加。或（ii）“逃离琼斯”和相对较强的LC效应。使用1986年至2002年的美国消费者支出数据，我们发现家庭偏好存在巨大的异质性。尽管美国家庭一直表现出“跟上琼斯的步伐”，HC和LC影响的相对强度在不同种族的人群和商品之间有所不同。同样，虽然LC组在服装，珠宝，个人护理等方面的支出通常比医疗保健，家居装饰，车辆维护等方面的支出更为明显，但在HC组中，其支出不那么明显，因为种族。我们得出结论，偏好的异质性可能解释了显着支出与同伴群体不平等之间所观察到的关系的差异。HC组中由于种族的异质性不那么明显。我们得出结论，偏好的异质性可能解释了显着支出与同伴群体不平等之间所观察到的关系的差异。在HC组中，由于种族的异质性，它不那么显眼。我们得出结论，偏好的异质性可能解释了显着支出与同伴群体不平等之间所观察到的关系的差异。