The Spirit of Capitalism and Excess Smoothness
نویسندگان
چکیده
In a recent paper [Luo, Smith, and Zou (2009)] we showed that the spirit of capitalism could in theory resolve the two fundamental anomalies of modern consumption theory, excess sensitivity and excess smoothness. However, that basic model could not plausibly explain the empirical magnitude of excess smoothness. In this paper we develop two extensions of the model — one with transitory and permanent shocks to income, the other with a stochastic interest rate — that where the spirit of capitalism can explain excess smoothness.
منابع مشابه
Psychoanalysis and the Spirit of Capitalism
Although The Interpretation of Dreams was published over a century ago, the integration of psychoanalysis into the broad matrix of modern social and cultural history has barely begun. During his lifetime, Freud’s charisma was so powerful that the historical landscape surrounding him remained in shadows. Only decades after his death did light begin to dawn. The earliest significant attempt to hi...
متن کاملThe Economic Sociology of Capitalism Weber and Schumpeter
This article points to a distinct puzzle in the analyses of capitalism that can be found in the works of Weber and Schumpeter, and gives a new introduction to their analysis of capitalism. Both Weber and Schumpeter wrote voluminously on capitalism, as testified to by such giant works as Economy and Society (Weber, 1978c [1922]) and Business Cycles (Schumpeter, 1939). One can also discern a dist...
متن کاملSpirit of Capitalism and Conspicuous Consumption with Social Status in a Neoclassical Growth Trade Model
This study deals with dynamic interactions among social status, conspicuous consumption, spirit of capitalism, global growth, trade patterns, and inequalities in income and wealth between countries. The paper constructs a multi-country growth model with endogenous physical capital, wealth accumulation and social status. The modelling of social status is influenced by the ideas related to econom...
متن کاملSocial Status, Non-Expected Utility, Asset Pricing, and Growth
This paper investes testable restrictions on the time-series behavior of consumption and asset returns implied by a representative agent model with the spirit of capitalism in which intertemporal preference is represented by a utility function that generalizes conventional, time-additive, expected utility. In the recursive structure of preference, we examines the implication for consumption, po...
متن کامل'The spirit of capitalism' and long-run growth
In this paper, we will show that the capitalist-spirit approach to economic growth has been developed by Adam Smith, Karl Marx, Max Weber and John Maynard Keynes and many others. It can be demonstrated that countries with different degree of the capitalist spirit will have different per capita consumption, per capita capital stock and different endogenous growth rates in the long run. This capi...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2009