Aspirations and Inequality

Aspirations, Health and the Cost of Inequality*

How does inequality motivate people and at what cost? In a model of perpetual youth, people have heterogeneous upward-looking aspirations. They value their consumption relative to the conditional mean of those above them in the distribution; their survival depends on health capital produced from time investment and health goods. Higher fundamental inequality, working through the aspirations gap...

A Spirations And

This paper develops a theory of socially determined aspirations, and the interaction of those aspirations with growth and inequality. The interaction is bidirectional: economy-wide outcomes determine individual aspirations, which in turn determine investment incentives and social outcomes. Thus aspirations, income and the distribution of income evolve jointly. When capital stocks lie in some co...

Aspirations, Inequality, Investment and Mobility

What individuals want for themselves, or what parents want for their children, is conditioned by society in fundamental ways. One such pathway is via the creation of individual aspirations (for their own future, or for their children’s future). To some extent, such aspirations are drawn from past individual experience (as in the literature on habit formation or reference points), but at the sam...

Inequality , Aspirations , and Social Comparisons ∗

We develop a model of adaptive learning with social comparisons. Actors are more likely to choose actions that recently yielded satisfactory payoffs; satisfaction is evaluated relative to an aspiration level that reflects previous payoffs and possibly other players’ payoffs. This captures the phenomenon of social comparison via reference groups. We show that if agents compare themselves to thos...

Aspirations, education and inequality in England: insights from the Effective Provision of Pre-school, Primary and Secondary Education

Housing in the Urban Age: Inequality and Aspiration in Mumbai

In scholarly and popular texts, Mumbai is invoked as an iconic example of the problem of urban informal settlements in the twenty-first century. While such representations oscillate between tropes of accommodation and marginalization, they often obfuscate the compromised and historical successes of settler politics in the city. In this paper, the authors use an international urbanization confer...