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Aspirations and Economic Behavior

Author

Listed:
  • Garance Genicot
  • Debraj Ray
Abstract
This article reviews the literature on aspirations in economics, with a particular focus on socially determined aspirations. The core theory builds on two fundamental principles: (a) Aspirations can serve to inspire, but still higher aspirations can lead to frustration and resentment; and (b) aspirations are largely determined by an individual's social environment. Using the structure of this core theory, we discuss the implications of our framework for the study of interpersonal inequality, social conflict, fertility choices, risk taking, and goal setting.

Suggested Citation

  • Garance Genicot & Debraj Ray, 2020. "Aspirations and Economic Behavior," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 715-746, August.
    • Handle: RePEc:anr:reveco:v:12:y:2020:p:715-746
    DOI: 10.1146/annurev-economics-080217-053245
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