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Economics of status and culture
(02/25/2022) Aretos, Ilias; Athens University of Economics and Business, Department of Economics; Antoniou, Fabio; Dendramis, Yiannis; Dioikitopoulos, Evangelos
In this study, we examine the effect of culture on the individual’s preference on status goods using the Hofstede (2010), Falk et al. (2018) and Μichalopoulos and Xue (2021b) datasets, over the period 2004–2018. We use cross-country data, thus our research focuses on between-country variations. Generally, a status-oriented society is an individualistic society with a risk-averse profile. Furthermore,societies based on importance-related motivation through fairytales are more likely to be status-oriented. Our results suggest that policymakers and scholars should always take into account the cultural background that every society has, in order to get reliable results.