Chu, Chi-Ho Angus 
ORCID: 0000-0002-7196-1277, Fan, Haichao and Xilin, Wang
(2020)
Status-seeking culture and development of capitalism.
Journal of Economic Behavior and Organization, 180.
pp. 275-290.
|
Text
culture.pdf - Author Accepted Manuscript Download (1MB) | Preview |
Abstract
According to Werner Sombart's classic text Luxury and Capitalism, the status-seeking behavior of individuals may facilitate the development of capitalism and an early industrialization. In this study, we develop a growth-theoretic framework to formalize this hypothesis by introducing a status-seeking preference into the Schumpeterian growth model of endogenous takeoff. Then, we explore how this cultural preference affects the transition of an economy from pre-industrial stagnation to modern economic growth. We find that the effects of status-seeking behaviors evolve across different stages of economic development. Specifically, a stronger preference for status seeking causes an earlier takeoff and increases economic growth in the short run but has an overall negative effect on the steady-state equilibrium growth rate. Finally, we calibrate the model to US data to perform a quantitative analysis and also use cross-country data to estimate the effects of status-seeking preference on economic growth.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Behavioral and Social Science, Basic Behavioral and Social Science |
| Depositing User: | Symplectic Admin |
| Date Deposited: | 27 Oct 2020 08:16 |
| Last Modified: | 17 Mar 2024 10:23 |
| DOI: | 10.1016/j.jebo.2020.10.010 |
| Related URLs: | |
| URI: | https://livrepository.liverpool.ac.uk/id/eprint/3105231 |
Dimensions
Dimensions
