positively associated with both the fraction of high status cars bought in the county, and
indicators of consumer leverage. These results suggest the signaling motive might feature in
some durable goods consumption choices, as households seek to “get ahead of the Joneses”, and
invest in status consumption goods to signal that they might have advanced in their relative
income position. These findings also suggest that rising inequality might have broader
macroeconomic consequences, including a reduced savings rate and greater household debt."
