Although people's perception of (income or wealth) inequality has important e_ects on their decisions as economic agents or voters, little is known about how perceptions relate to measured inequality. We present a novel formal framework that is based on the assumption that people typically do...

This paper studies the impact of income inequality on trust from a theoretical and an empirical perspective. The model is built on the assumption that trust (defined as expected trustworthiness) is influenced by individual perceptions of inequality. These perceptions might have a social and a...

Over the recent years one could repeatedly hear the claim that a rising concern for relative standing (in terms of consumption) was partly responsible for the decline in household savings and in growth that could be observed in some developed countries (particularly in the US) and that the rise...