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Theoretical Considerations On The Consumption-Based Economic Growth

Author

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  • Emil DINGA

    ("Victor Slavescu" Financial and Monetary Research Centre, Romanian Academy, Romania)

Abstract

The paper aims to analyse, from a critical point of view, the standard models of economic growth which are based on the consumption as command variable within a post-keynesian economy. To this end, firstly, the study identifies the theoretical macroeconomic variables which can stay as proxies for consumption (for example, the wage), extracting the pros and cons arguments for every of them. Finally, the paper provides a set of arguments in favour of considering the consumption as an appropriate macroeconomic variable to model the economic growth, especially in the post-pandemic COVID-19 period, based, of course, on taking into account the economic sustainability on medium and long term.

Suggested Citation

  • Emil DINGA, 2020. "Theoretical Considerations On The Consumption-Based Economic Growth," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 5(3), pages 16-22.
    • Handle: RePEc:brc:brccej:v:5:y:2020:i:3:p:16-22
    as

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    References listed on IDEAS

    as
    1. Ozlem Onaran & Thomas Obst, 2016. "Wage-led growth in the EU15 member-states: the effects of income distribution on growth, investment, trade balance and inflation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(6), pages 1517-1551.
    2. Marc Lavoie & Stockhammer Engelbert, 2013. "Wage-Led Growth: An Equitable Strategy for Economic Recovery," Post-Print hal-01343664, HAL.
    3. Disoska, Elena Makrevska & Toshevska-Trpcevska, Katerina, 2016. "Debt or Wage-led Growth : the European Integration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 31(2), pages 326-352.
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    More about this item

    Keywords

    economy; consumption; growth; sustainability;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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