Conspicuous Consumption, Inequality and Debt: The Nature of Consumption-driven Profit-led Regimes

Jakob Kapeller and Bernhard Schütz

Metroeconomica, 2015, vol. 66, issue 1, 51-70

Abstract: This paper extends the theoretical concept of wage-led and profit-led demand regimes by incorporating relative consumption concerns. Specifically, it integrates the Veblenian concept of conspicuous consumption into the Bhaduri–Marglin model by assuming that relative consumption concerns matter primarily within the working class. If in such a framework the profit share increases and the corresponding decrease in workers' income is distributed unevenly, efforts to ‘keep up with the Joneses’ may increase consumption and, hence, lead to a consumption-driven profit-led regime.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (71)

Downloads: (external link)
http://hdl.handle.net/10.1111/meca.12061 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Conspicuous consumption, inequality and debt: The nature of consumption-driven profit-led regimes (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:metroe:v:66:y:2015:i:1:p:51-70

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0026-1386

Access Statistics for this article

Metroeconomica is currently edited by Heinz D. Kurz and Neri Salvadori

More articles in Metroeconomica from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().