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Business Cycles with Spirit of Capitalism and Conspicuous Consumption in a Multi-Country Growth Model

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  • Wei-Bin Zhang

Abstract

This paper generalizes the global economic growth model with spirit of capitalism, social status, and conspicuous consumption recently proposed by Zhang (2016). Zhang’s model examines the role of spirit of capitalism, social status, and conspicuous consumption in national and international economic development, trade patterns, and distribution of income and wealth between countries. The multi-country growth model treats social status and wealth accumulation as endogenous variables. This paper generalizes the model by Zhang through making all exogenous constant parameters as exogenous time-dependent parameters. We demonstrate how the system reacts to exogenous periodic perturbations.

Suggested Citation

  • Wei-Bin Zhang, 2017. "Business Cycles with Spirit of Capitalism and Conspicuous Consumption in a Multi-Country Growth Model," International Business Research, Canadian Center of Science and Education, vol. 10(8), pages 58-71, August.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:8:p:58-71
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    References listed on IDEAS

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    1. Konrad, Kai A., 1992. "Wealth seeking reconsidered," Journal of Economic Behavior & Organization, Elsevier, vol. 18(2), pages 215-227, July.
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    3. Wei-Bin Zhang, 2015. "How Do The Richest 1% Own 50% Of Global Wealth In An Integrated Walrasin-General-Equilibrium And Oniki-Uzawa S Trade Theory," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 7(1 (March)), pages 7-44.
    4. Zhang, Wei-Bin, 1993. "A woman's labor participation and economic growth : Creativity, knowledge utilization and family preference," Economics Letters, Elsevier, vol. 42(1), pages 105-110.
    5. Zhang, Wei-Bin, 1994. "Knowledge, Growth and Patterns of Trade," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 28(3), pages 285-303, September.
    6. Kazuo Nishimura & Koji Shimomura, 2012. "Trade and Indeterminacy in a Dynamic General Equilibrium Model," Springer Books, in: John Stachurski & Alain Venditti & Makoto Yano (ed.), Nonlinear Dynamics in Equilibrium Models, edition 127, chapter 0, pages 347-361, Springer.
    7. H. Oniki & H. Uzawa, 1965. "Patterns of Trade and Investment in a Dynamic Model of International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(1), pages 15-37.
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    9. Bakshi, Gurdip S & Chen, Zhiwu, 1996. "The Spirit of Capitalism and Stock-Market Prices," American Economic Review, American Economic Association, vol. 86(1), pages 133-157, March.
    10. Wei-Bin Zhang, 2016. "Spirit of Capitalism and Conspicuous Consumption with Social Status in a Neoclassical Growth Trade Model," Business and Economic Research, Macrothink Institute, vol. 6(1), pages 70-95, June.
    11. Wei-Bin Zhang, 2012. "Global effects of national fiscal policy in a multi-country growth model with capital accumulation," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 9(1), pages 42-58.
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    13. repec:bla:reviec:v:10:y:2002:i:4:p:645-56 is not listed on IDEAS
    14. Ikeda, Shinsuke & Ono, Yoshiyasu, 1992. "Macroeconomic Dynamics in a Multi-country Economy: A Dynamic Optimization Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 629-644, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    spirit of capitalism; oscillations; global economic growth; social status; inequality in income and wealth; conspicuous consumption;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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