Luxury-based Growth

Article OPEN
Shiro Kuwahara;
(2006)
  • Journal: Economics Bulletin,volume 15,issue 5,pages1-13
  • Subject:
    • jel: jel:E2 | jel:O1

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 wi... View more
  • References (8)

    2Consupicuous consumption is analyzed by, for example, Corneo and Jeanne (1997),

    and Yamada (2005). [1] Corneo, G. and Jeanne, O. (1997) ”Conspicuous Consumption, Snob-

    bism and Conformism,” Journal of Public Economics 66, 55-71. [2] Matsuyama, K. (2002) ”The Rise of Mass Consumption Societies,” Jour-

    nal of Political Economy 110, 1035-1070. [3] Quah, D. (1996) ”Empirics for Economic Growth and Convergence”,

    European Economic Review 40(6), 1353-1375. [4] Quah, D. (1997) ”Empirics for Growth and Distribution: Polarization,

    2(1), 27-59. [5] Sombart, W. (1922) Liebe, Luxus und Kapitalismus. [6] Veblen, T. (1899) The Theory of Leisure Class. βη K(1) > U (1)

    K(1) < U (1)

    Figure 2: Growth Phases

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