Optimal Economic Growth and Wealth Effects

Kurz, Mordecai

doi:10.2307/2556231

Cited by 239 publications

(112 citation statements)

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“…The Weber economy should consist of a representative household with a preference for wealth accumulation, which, following Kurz (1968), is captured by the assumption that the household derives utility from both consumption (c) and per capita wealth, the financial asset in this study, (A). Thus, the representative agent in this economy has the following utility: ijef.ccsenet.org International Journal of Economics and Finance Vol.…”

Section: Weberian Householdmentioning

confidence: 99%

When is the Spirit of Capitalism Effective for Economic Development?

Kuwahara¹

2018

IJEF

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By incorporating endogenous innovation and wealth preference into the growth model, this paper aims to combine two important factors of economic development --creative destruction,‖ as emphasized by Schumpeter (1912) and modelized by Aghion and Howitt (1992), and the -spirit of capitalism,‖ proposed by Weber (1905). Zou (1994) introduced this -spirit of capitalism‖ into the modern growth analysis by reinterpreting the Kurz (1968) model, wherein a preference on asset accumulation is introduced into the Ramsey model. By uniting these two factors, we obtain the result that this preference basically stimulates the long-term growth rate, and that it is effective when the economy has a too low innovation efficiency. However, the effect is small for an economy with a sufficiently high innovation efficiency.

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Section: Weberian Householdmentioning

confidence: 99%

When is the Spirit of Capitalism Effective for Economic Development?

Kuwahara¹

2018

IJEF

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“…This challenged the economic drivers of fertility change being proposed by Becker (1960), Easterlin (1975), and Galor and Weil (2000) and others. Kurz (1968), Corneo and Jeanne (2001) and Fisher and Hof (2005) introduce the status effect -each household is better off if it has more wealth than its reference group on the average -as a component of a household's stable investment function. Palokangas (2009, 2010) examine the economic and demographic growth of developing countries by a family-optimization model.…”

Section: Introductionmentioning

confidence: 99%

Land reforms and population growth

Lehmijoki

Palokangas

2016

Port Econ J

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One of the greatest puzzles in demographic history is why in the rich and urbanized England, fertility declined much later than in the poor and rural France. We consider the effects of a land reform on demographic growth by a familyoptimization model where relative per capita wealth generates social status and welfare. We show that tenant farming is the major obstacle to escaping the Malthusian trap with high fertility and low productivity. A land reform provides peasants with higher returns for their investments, inducing them to increase their productivity and status rather than their family size. Consequently, the population growth rate slows down, but the productivity of land increases.

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“…The importance of status was already recognized by Adam Smith (1776), who denoted the appreciation of productive assets as the "Spirit of Capitalism". Kurz (1968), Corneo and Jeanne (2001) and Fisher and Hof (2005) used status to explain economic growth in advanced economies. Later, Palokangas (2009, 2010) applied status-seeking to explain economic and demographic growth in developing countries.…”

Section: Introductionmentioning

confidence: 99%

Landowning, Status and Population Growth

Lehmijoki

Palokangas

2014

Dynamic Modeling and Econometrics in Economics and Finance

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This paper considers the effects the landowning and land reforms on economic and demographic growth by a family-optimization model with endogenous fertility and status-seeking. A land reform provides the peasants with strong incentives to limit their family size and to improve the productivity of land. Even though the income effect due to the land reform tends to rise fertility, a strong enough status-effect outweighs it, thus generating a decrease in population growth. The European demographic history provides supporting anecdotal evidence for this theoretical result.Journal of Economic Literature: O41, J13, N33

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Optimal Economic Growth and Wealth Effects

Cited by 239 publications

References 0 publications

When is the Spirit of Capitalism Effective for Economic Development?

When is the Spirit of Capitalism Effective for Economic Development?

Land reforms and population growth

Landowning, Status and Population Growth

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