You are viewing an older edition of the Newsletter. Please click here to go back to the latest edition.
June 2016
Ankur Sarin

Ankur Sarin is faculty in the Public Systems Group. He currently teaches courses in Public Policy, Microeconomics, Social Entrepreneurship and Program Evaluation. His areas of research interests include understanding the impact of technology on the lives of the poor.
Abstracts of other articles published in refereed journals included in this issue
  • Conspicuous Consumption and Income Inequality in an Emerging Economy: Evidence from India
    In Marketing Letters, 26(3), February 4, 2015, 279-292

    Ankur Sarin and Saravana Jaikumar

    The impact of income inequality on conspicuous consumption has been a topic of much discussion, but little empirical examination in the emerging market context. In this paper, using data from the India Human Development Survey (2004–2005) and employing simple regression framework, we examine the effect of income inequality on conspicuous consumption in Indian households. We also empirically examine whether the relationship between inequality and conspicuous consumption changes with a household’s relative wealth status. Drawing on existing literature, we hypothesize that low-income and rural groups are likely to engage in higher conspicuous consumption due to the reduced attractiveness of alternate mechanisms to signal status (like professional titles and educational qualifications) as well as the absence of well-functioning financial institutions that might inhibit “status seeking” savings. Consistent with this hypothesis, our results suggest that increased income inequality is associated with an increased spending on conspicuous consumption as a share of total spending, with the associated response being higher for relatively low-income households and those living in rural settings. Our findings have significant policy and marketing implications in emerging markets like India.

Abstracts of other articles published in refereed journals included in this issue

Subscriber Tools
Subscribe | Unsubscribe  | Archives

Copyright © 2010-12 IIM Ahmedabad, All Rights Reserved