Business Cycles with Spirit of Capitalism and Conspicuous Consumption in a Multi-Country Growth Model

摘要

This paper generalizes the global economic growth model with spirit of capitalism, social status, and conspicuous consumption recently proposed by Zhang (2016). Zhang’s model examines the role of spirit of capitalism, social status, and conspicuous consumption in national and international economic development, trade patterns, and distribution of income and wealth between countries. The multi-country growth model treats social status and wealth accumulation as endogenous variables. This paper generalizes the model by Zhang through making all exogenous constant parameters as exogenous time-dependent parameters. We demonstrate how the system reacts to exogenous periodic perturbations.