Our results demonstrate that borrowing and emulation transform the relationship between distribution and growth, giving rise to the possibility of a “consumption-driven, profit-led” growth regime (Kapeller and Schütz, 2015) and what we call the “paradox of inequality.” A key conclusion is that the wage-or -profit led characteristics of the growth process, rather than being invariant, can be altered by social constructs such as borrowing and consumption norms that change over time.
Working Paper
Household Borrowing and the Possibility of “Consumption- Driven, Profit-Led Growth”
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Working Paper Series By
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- E00: Macroeconomics and Monetary Economics: General
- E01 Measurement and Data on National Income and Product Accounts and Wealth
- E1 General Aggregative Models
- E12 Keynes; Keynesian; Post-Keynesian
- E4 Money and Interest Rates
- E44 Financial Markets and the Macroeconomy
- O40: Economic Growth and Aggregate Productivity: General
- O41 One, Two, and Multisector Growth Models