In this paper we examine the to-date relevance of Duesenberry´s Consumption Theory through an applied case to four economies in Latin America: Mexico, Brazil, Argentina and Colombia. Using annual time series of these countries we show that some empirical evidence of Duesenberry´s theory still holds and should not be discarded in modern macroeconomics as it has happened in regular macro text books in mainstream economics. Duesenberry´s theory includes important institutional factors that cannot be replaced by the permanent income hypothesis or the life cycle hypotheses. In the paper we explore different specifications of the consumption functions based on the relevant literature. Final conclusions are presented.

This paper offers an explanation on how the free market ideology gives rise to the social distinction of being considered a follower of democracy, but with the purpose of being admired from the social viewpoint. This only enhances the ceremonial feature of being a democracy follower. This habit of thought inculcated by the establishment supports pecuniary behaviors submerged in the state, and resigns excluded people to the apparently idea there is not alternatives for change. Understanding that the social process is complex continuously evolving, we propose several and basic elements to explain the negative influence of the establishment under its free market ideological discourse.

Este trabajo describe los conceptos con respecto al tema de las instituciones expresadas por el profesor Jairo Parada y el Centro de Estudios Económicos Regionales del Banco de la República de Cartagena y que han suscitado un debate entre estos dos destacados actores de la opinión económica regional. Para comprender ese debate, se procedió a definir lo que cada una de las partes entiende por instituciones, su relación con el desarrollo económico regional y, por ende, las implicaciones de política que buscan promover el desarrollo económico y social de la región Caribe.