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Savings and Emulation: Could the U.S. Savings Paradox Be Explained by an Arms Race to Consume?

Black, Kevin
http://rave.ohiolink.edu/etdc/view?acc_num=bgsu1237581054

Abstract Details

2009, Master of Arts (MA), Bowling Green State University, Economics.
This paper builds on a minority view that consumer theory should include social variables rather than omit them. Using the theories first proposed by Thorstein Veblen and James Duesenberry this study analyzes the role which emulation plays in the U.S. Savings Paradox. At the micro level, an individual's amount of savings was estimated with the 2004 Survey of Consumer Finances. By using consumer debt as the proxy for emulation, the results find that changes in individual and aggregate savings can be explained by emulative consumption. Furthermore, the consumption externalities from emulation were shown to granger cause income inequality, which in turn granger caused the personal savings rate. The results confirm the minority view that consumption behavior is dependent on others. It appears that the U.S. Savings Paradox is the result of increased emulative consumption. For that reason, consumer theory needs can longer omit relevant social variables.
Dr. Kevin Quinn (Advisor)
Dr. Mary Ellen Benedict (Advisor)
60 p.
Economics
savings rate; income; personal savings; consumption; EMULATION; Duesenberry

Recommended Citations

Citations

  • Black, K. (2009). Savings and Emulation: Could the U.S. Savings Paradox Be Explained by an Arms Race to Consume? [Master's thesis, Bowling Green State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=bgsu1237581054

    APA Style (7th edition)

  • Black, Kevin. Savings and Emulation: Could the U.S. Savings Paradox Be Explained by an Arms Race to Consume? 2009. Bowling Green State University, Master's thesis. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=bgsu1237581054.

    MLA Style (8th edition)

  • Black, Kevin. "Savings and Emulation: Could the U.S. Savings Paradox Be Explained by an Arms Race to Consume?" Master's thesis, Bowling Green State University, 2009. http://rave.ohiolink.edu/etdc/view?acc_num=bgsu1237581054

    Chicago Manual of Style (17th edition)

bgsu1237581054
723
© 2009, all rights reserved.
This open access ETD is published by Bowling Green State University and OhioLINK.