Conspicuous Consumption, Inequality and Debt: The Nature of Consumption‐driven Profit‐led Regimes

Kapeller, Jakob; Schütz, Bernhard

doi:10.1111/meca.12061

Cited by 81 publications

(59 citation statements)

References 68 publications

(113 reference statements)

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“…In other words, most of the papers are dealing with autonomous consumption expenditures (even if not named like this) when introducing a borrowing component and adding the effects of consumer credit backed by financial and housing wealth. In addition, a few papers go further and explicitly attribute an autonomous component to consumption to account for the unexplained part of consumption (see ONARAN;STOCKHAMMER;GRAFI, 2011;KIM;MEI, 2013;KAPELLER;SCHUTZ , 2014b). Yet, in any case, these autonomous components of consumption are assumed to grow in line with the capital stock growth (SERRA-NO, 1995;LAVOIE, 2013).…”

Section: Autonomous Consumption As a Source Of Demand Growthmentioning

confidence: 99%

“…Duenseberry and/or Veblen's ideas were recovered to deal with escalating household consumption, despite stagnant labor income. Conspicuous consumption and emulation effect were included in many models to explain debt-led consumption dynamics (BARBA; PIVETTI, 2009;KIM, 2012;VAN TREECK, 2012;RYOO;KIM;MEI., 2013;KAPELLER;SCHUTZ, 2014a;2014b).…”

Section: Introductionmentioning

confidence: 99%

“…The third is the maintenance in most models of the Kaleckian dichotomy between two classes of agents according to the type of income earned: capitalists/ rentists or creditors or high income households, on the one hand, and workers or debtors or low-middle income households on the other (PALLEY, 1994;2009;DUTT, 2006;HEIN, 2011;KIM, 2012;KAPELLER;SCHUTZ, 2014a;2014b).…”

Section: Introductionmentioning

confidence: 99%

“…On the other hand, Kapeller andSchutz (2014a, 2014b) focus mainly on the intra-class emulation effect, since they believe that "relative consumption concerns matter primarily within a certain socioeconomic group (e.g. among workers)", introducing "a more realistic assumption on the social mediation of preferences" (KAPELLER; SCHUTZ, 2014b, p. 786).…”

mentioning

confidence: 99%

“…In most of them, functional income distribution (that is, distribution between wages and profit), is decided outside the model by conflicting claims between workers and capitalists or by pricing decisions of firms, based on a mark-up on their costs (see LAVOIE, 2014). The mark-up is considered as an exogenous variable in most of these papers (PALLEY, 1994;DUTT, 2006;BHADU-RI, LASKI;RIESE, 2006;ZEZZA, 2008;HEIN, 2011;KIM;SETTEFIELD;MEI, 2013;KAPELLER;SCHUTZ, 2014). This means they are concerned about the effects of a redistribution between profit and wages on personal income distribution and about how borrowing can lead to income transfers from one group of households which consumes more to another which consumes less, but without any endogenous change in functional income distribution.…”

mentioning

confidence: 99%

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The Macroeconomic Implications of Consumption: State-of-Art and Prospects for the Heterodox Future Research

Brochier¹,

Silva

2017

RAE

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Abstract:The recent US economic scenario has motivated a series of heterodox papers concerned with household indebtedness and consumption. Though discussing autonomous consumption, most of the theoretical papers rely on private investmentled growth models. An alternative approach is the so-called Sraffian supermultipler model, which treats long-run investment as induced, allowing for the possibility that other final demand components -including consumption -may lead long-run growth. We suggest that the dialogue between these approaches is not only possible but may prove to be quite fruitful.Keywords: Consumption. Household debt. Growth theories. Autonomous expenditures.Resumo: O cenário econômico recente dos Estados Unidos motivou uma série de artigos de cunho heterodoxo preocupados com o endividamento das famílias e com o consumo. Apesar de discutirem o consumo autônomo, a maioria dos artigos teóricos se baseia em modelos de crescimento liderado pelo investimento privado. Uma abordagem alternativa é a do chamado supermultiplicador "sraffiano", que aborda o investimento de longo prazo como induzido, permitindo que outros componentes da demanda final -incluindo o consumo -possam assumir a liderança do crescimento de longo prazo. Sugerimos que o diálogo entre essas abordagens não é apenas possível, mas pode se mostrar muito frutífero.Palavras-chave: Consumo. Endividamento do consumidor. Teorias de crescimento. Gastos autônomos.

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Section: Autonomous Consumption As a Source Of Demand Growthmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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The Macroeconomic Implications of Consumption: State-of-Art and Prospects for the Heterodox Future Research

Brochier¹,

Silva

2017

RAE

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Minsky Models: A Structured Survey

Nikolaidi¹,

Stockhammer²

2018

Analytical Political Economy

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Minsky's ideas have recently gained prominence in the mainstream as well as in the heterodox literature. However, there exists no agreement upon the formal presentation of Minsky's insights. The aim of this paper is to survey the literature and identify differences and similarities in the ways through which Minskyan ideas have been formalised. We distinguish between the models that focus on the dynamics of debt or interest, with no or a secondary role for asset prices, and the models in which asset prices play a key role in the dynamic behaviour of the economy. Within the first category of models we make a classification between (i) the Kalecki-Minsky models, (ii) the Kaldor-Minsky models, (iii) the Goodwin-Minsky models, (iv) the credit rationing Minsky models, (v) the endogenous target debt ratio models and (vi) the Minsky-Veblen models. Within the second category of models, we distinguish between (i) the equity price Minsky models and (ii) the real estate price Minsky models. Key limitations of the models and directions for future research are outlined.

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A Rising Tide Lifts Some Boats, but Leaves Many Others Behind: The Harms of Inequality-Induced Status Seeking and the Remedial Effects of Employee Ownership

Bratanova

Summers

Liu

et al. 2019

The Social Psychology of Inequality

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Conspicuous Consumption, Inequality and Debt: The Nature of Consumption‐driven Profit‐led Regimes

Cited by 81 publications

References 68 publications

The Macroeconomic Implications of Consumption: State-of-Art and Prospects for the Heterodox Future Research

The Macroeconomic Implications of Consumption: State-of-Art and Prospects for the Heterodox Future Research

Minsky Models: A Structured Survey

A Rising Tide Lifts Some Boats, but Leaves Many Others Behind: The Harms of Inequality-Induced Status Seeking and the Remedial Effects of Employee Ownership

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