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Economic Growth with Social Status, Spirit of Capitalism, and Conspicuous Consumption

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  • Wei-Bin Zhang

    (Ritsumeikan Asia Pacific University)

Abstract

The purpose of this study is to introduce social status, conspicuous consumption, and spirit of capitalism into neoclassical growth model. This paper studies a dynamic interdependence between economic growth, economic structural change, income and wealth distribution, social status, conspicuous consumption, and spirit of capitalism in a small-open economy. We build a heterogeneous-households growth model with endogenous wealth accumulation and social status. The dynamics of J-households economy is described by J differential equations. We simulate the motion of the model with three groups of households. We carry out comparative dynamic analysis with regard to some parameters.

Suggested Citation

  • Wei-Bin Zhang, 2020. "Economic Growth with Social Status, Spirit of Capitalism, and Conspicuous Consumption," Shanlax International Journal of Economics, Shanlax Journals, vol. 9(1), pages 1-10, December.
    • Handle: RePEc:acg:journl:v:9:y:2020:i:1:p:1-10
    DOI: 10.34293/economics.v9i1.3500
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    References listed on IDEAS

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