 Demand Iteration Speed as a Driver of Economic Growth in Saturated EconomiesXiulei He MPRA Paper from University Library of Munich, Germany Abstract: When population growth stalls and per capita consumption of physical goods approaches saturation, traditional supply-side growth models fail to explain the persistent slowdown in advanced economies. This paper introduces the concept of demand iteration speed, defined as the frequency with which a given product or service is repurchased per unit time, and embeds it into a national-accounting decomposition of consumption expenditure. The growth rate of consumption is shown to equal the sum of population growth, growth in per-transaction consumption volume, and growth in average iteration speed. This decomposition reveals that in the post-growth era, iteration speed becomes the decisive structural variable for economic growth, providing a unified lens to interpret the historical succession of growth engines from durable infrastructure to high-frequency digital services. We apply this framework to Hong Kong, a mature small open economy, and identify four high-iteration sectors that can support its long-term growth. Keywords: consumption frequency; demand iteration; economic growth; structural change; post-growth economy; Hong Kong (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:129078 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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