Social Interaction and Economic Institution
Posted: 1 Dec 2009
Date Written: 2004
Abstract
This dissertation explores inequality and longer work hours and the relationship to various businesses and their ability to obtain low-interest loans. The first chapter provides insight into the relationship of how a desire to emulate the standard of consumption established by the wealthy has lead to inequality and longer working hours. The second chapter discusses the Veblen effect by revealing a relationship between the earnings inequalities of men and the labor supply decisions of their wives. The emulation effect is different from other explanations about other potential effects, such as the "rat-race" model. The third chapter provides a cost/benefit analysis of relationship banking. Using the NSSBF dataset, it is shown that young and small firms in a concentrated banking market display lower debt-to-asset ratios and less institutional debt, while they are offered lower interest rates. (JSD)
Keywords: Veblen effect, Manufacturing industries, Banking industry, Family-work relations, Debt financing, Inequality, Wages & salaries, Bank loans, Interest (finance)
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