Quintana-Domeque, Climent; Turino, Francesco - Department of Economics, Oxford University - 2013
visible goods (e.g., cars, clothing, jewelry) and that households consume both visible and non-visible goods. Contrary to … rate of substitution between the visible and non-visible goods will always be different than the socially optimal one … competitive equilibrium consumption of non-visible goods will be strictly lower than the socially optimal one, consistent with …
