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Luxury-based Growth

  • Shiro Kuwahara

    ()

    (Graduate School of Economics, Kyoto University)

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    Assuming that there exists a preference for luxury goods and a knowledge spillover from luxury goods production to goods production, this paper constructs an endogenous economic growth model. The model predicts two steady states: one is a steady positive growth state with regard to luxury goods production, and the other is a zero growth state in the absence of luxury goods production. Thus, this study examines the polarization of economies based on luxury goods consumption

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    File URL: http://www.accessecon.com/pubs/EB/2006/Volume15/EB-06O10005A.pdf
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    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 15 (2006)
    Issue (Month): 5 ()
    Pages: 1-13

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    Handle: RePEc:ebl:ecbull:eb-06o10005
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    1. Yamada, Katsunori, 2008. "Macroeconomic implications of conspicuous consumption: A Sombartian dynamic model," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 322-337, July.
    2. Corneo, Giacomo & Jeanne, Olivier, 1997. "Conspicuous consumption, snobbism and conformism," Journal of Public Economics, Elsevier, vol. 66(1), pages 55-71, October.
    3. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
    4. Veblen, Thorstein, 1899. "The Theory of the Leisure Class," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1899.
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